The Indian rupee was trading at 61.33/34 after hitting 61.41, its highest since March 14 and stronger than its 60.8450/8550 close on Tuesday.
Good dollar buying seen from foreign banks likely on behalf of clients looking to exit their equity and debt investments in India.
The NSE index down 0.2 percent and will be watched for cues on fund flows.
The rupee-dollar pair seen moving in 61.10 to 61.40 range during the rest of the session.
Most Asian currencies also trading weaker compared with the dollar.
Rupee depreciated by 30 paise in early trade
The Indian rupee depreciated by 30 paise to 61.14 against the US currency in early trade at the Interbank Foreign Exchange market today due to the dollar's gain against other currencies overseas.
Forex dealers said besides the dollar's gain against other currencies, fresh demand for the American unit from importers and a weak opening in the domestic equity market put pressure on the rupee.
The domestic currency had gained nine paise to close at 60.84 against the US dollar in yesterday's trade on the back of rising local stock market and sustained dollar selling by exporters.
Meanwhile, the benchmark BSE Sensex fell 37.45 points, or 0.14 per cent, to 25,870.56 in early trade today.