The rupee depreciated 12 paise to 65.11 against the US dollar in opening trade on Wednesday ahead of the release of US Fed meeting minutes scheduled later in the day.
However, weakness in the US dollar against select currencies overseas and a higher opening in domestic equities capped the losses.
Meanwhile, foreign portfolio investors (FPIs) sold equities worth Rs 684.99 crore on Tuesday, provisional data showed.
On Tuesday, the rupee had ended higher by 3 paise at 64.99 against the American currency amid easing US-China trade war fears.
Meanwhile, the benchmark BSE Sensex advanced by 92.26 points, or 0.27 per cent, at 33,972.51 in early deals.