The rupee on Tuesday depreciated by 23 paise to close at 73.68 against the US dollar in line with fall in equities amid steady capital outflows and the strengthening of the American unit against major rivals overseas.
At the Interbank Foreign Exchange, the rupee opened lower at 73.58 and lost further ground to hit an intra-day low of 73.70 on strong demand for the American currency from importers.
However, the rupee clawed back some lost ground and finally settled the day at 73.68, down by 23 paise.