The rupee fell 4 paise to 83.23 against the US dollar in early trade on Wednesday, amid sustained outflow of foreign funds and a stronger American currency against major overseas rivals.
Forex traders said positive domestic equity market failed to boost sentiment as investors remained concerned over volatile crude oil prices fearing disruption in global trade through the Red Sea route.
At the interbank foreign exchange, the rupee opened at 83.21 and slipped further to 83.23 against the greenback, registering a loss of 4 paise from its previous close.
On Tuesday, the domestic currency settled at 83.19 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent higher at 101.17 on Wednesday.
Global oil price benchmark Brent crude slipped 0.10 per cent to $80.99 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 270.57 points or 0.38 per cent higher at 71,607.37. The broader NSE Nifty rose 79.50 points or 0.37 per cent to 21,520.85.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹95.20 crore on Tuesday, according to exchange data.