On Tuesday, rupee had appreciated 34 paise to 69.43 against American currency.The rupee deprecated by 23 paise and fell to 69.70 per dollar mark in early trade on Wednesday amid strengthening of American currency and lower opening in domestic equities.Forex traders said sustained foreign fund outflows also weighed on local unit.
However, lower crude oil prices capped losses.
At Interbank Foreign Exchange, rupee opened weak at 69.60 then fell further to 69.70 against American currency, down 27 paise over it's previous closing price.On Tuesday, rupee had appreciated 34 paise to 69.43 against American currency.
Meanwhile, foreign funds pulled out Rs 48.19 crore from capital markets on a net basis, while domestic institutional investors bought shares worth Rs 142.58 crore on Tuesday, provisional data showed.
Brent crude, global benchmark, was trading lower at 53.59 per barrel, lower by 0.58 per cent.
The BSE benchmark Sensex Wednesday dropped over 200 points and NSE Nifty fell below 10,900 mark on selloff in metal and auto stocks amid weak cues from other Asian markets and foreign fund outflow.