The rupee depreciated 4 paise to 83.24 against the US dollar in early trade on Wednesday, as the strength of the American currency and a weak trend in domestic equities exerted pressure on the local unit.
Forex traders said sustained foreign fund outflows further dented investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 83.22, then touched 83.24, registering a decline of 4 paise over its last close.
On Tuesday, the rupee had settled at 83.20 against the dollar.
"The USD/INR pair is currently encountering significant resistance at the 83.30 level on the upside while finding support at around 82.80 on the downside. This essentially confines the pair within a range-bound pattern," CR Forex Advisors MD-Amit Pabari said.
However, it's worth noting that if either of these key levels is breached, there could be a substantial movement of 80 to 90 paise in either direction, Pabari said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.14 per cent to 107.14.
Brent crude futures, the global oil benchmark, fell 0.11 per cent to USD 90.82 per barrel on tighter supply outlook.
In the domestic equity market, the 30-share BSE Sensex was trading 441.51 points or 0.67 per cent lower at 65,070.59. The broader NSE Nifty declined 126.95 points or 0.65 per cent to 19,401.80.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 2,034.14 crore, according to exchange data.