The Indian rupee depreciated by 18 paise to 50.06 against the US currency in early trade today on raised concerns of fresh capital outflows by funds from the domestic bourses.
Dollar's strength against some other Asian currencies also put pressure on the Indian rupee.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted lower at 50.06 a dollar, down by 18 paise over the previous close of 49.88/90.
Forex dealers said expectations of capital outflows by foreign funds on hopes of subdued opening on the domestic stock markets and dollar's gains against some other Asian currencies, mainly weighed down the rupee.
The rupee ended 14 paise higher at 49.88/90 against the USD on Monday on firm equity market. The forex and money markets remained closed yesterday on account of "Ambedkar Jayanti".
