The rupee depreciated 2 paise to 82.77 against the US dollar in early trade on Monday weighed down by foreign capital outflows and a rise in crude oil prices in the international market.
However, a weak greenback against major rivals overseas cushioned the downside for the local unit, forex dealers said.
At the interbank foreign exchange, the domestic unit opened weak at 82.80 against the dollar, then gained some ground to quote 82.77, registering a decline of just 2 paise over its previous close.
In the previous session on Friday, the rupee settled almost flat at 82.75 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 104.54.
Brent crude futures, the global oil benchmark, advanced 1.20 per cent to $79.99 per barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹1,975.44 crore, according to exchange data.