The rupee depreciated 9 paise to 83.53 against the US dollar in early trade on Tuesday, weighed down by a strong American currency and elevated crude oil prices.

Forex traders said a negative trend in domestic equities and sustained foreign fund outflows also dented investor sentiments.

According to interbank foreign exchange, the rupee opened at 83.51 against the dollar and touched a low of 83.53 in the initial trade, registering a fall of 9 paise over its previous close.

On Monday, the rupee declined 6 paise to settle at 83.44 against the US dollar.

Rupee fell further as foreign portfolio investors continued to buy dollars and sell stocks on risk aversion due to Middle East tensions and US yields heading higher, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

“Need to watch what the Reserve Bank of India (RBI) does to counter the rupee depreciation,” Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.34, higher by 0.13 per cent.