The rupee declined 8 paise to 74.91 against the US dollar in opening trade on February 3 weighed down by the strength of the American currency and muted domestic equities.
Forex traders said elevated crude oil prices also dragged down the local unit.
At the interbank foreign exchange, the rupee opened at 74.84 against the US dollar, then slipped further to 74.91, registering a decline of 8 paise over the last close.
The rupee on February 2 had settled at 74.83 against the American currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.10% to 96.03.
Meanwhile, the global oil benchmark Brent crude futures fell by 0.25% to $89.25 per barrel.
On the domestic equity market front, the 30-share Sensex was trading more than 278.94 points or 0.47% lower at 59,279.39, while the broader NSE Nifty declined by 77.30 points, or 0.43%, to 17,702.70.
Foreign institutional investors remained net sellers in the capital market on Wednesday, as they offloaded shares worth ₹183.60 crore, as per stock exchange data.