The rupee depreciated 4 paise to 83.17 against the US dollar in early trade on Wednesday amid selling of equities by foreign investors and an upward movement in crude oil prices.

Subdued sentiment in the domestic equity markets also weighed on the Indian currency, forex traders said.

At the interbank foreign exchange, the rupee opened at 83.13 and slipped to 83.17 against the greenback, down 4 paise from its previous close.

The domestic currency settled 1 paisa higher at 83.13 on Tuesday.

The range-bound movement in the Indian currency was attributed to investors' concern over upcoming inflation numbers of India as well as the US to be released this week.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent lower at 102.26 on Wednesday.

Brent crude futures, the global oil benchmark, rose 0.23 per cent to $77.77 per barrel.

In the domestic equity market, 30-share benchmark Sensex was trading 28.34 points, or 0.04 per cent, lower at 71,357.87. The broader Nifty fell 7.85 points, or 0.04 per cent, to 21,537.

Foreign institutional investors (FIIs) sold shares worth ₹990.90 crore on Tuesday, according to exchange data.