The rupee depreciated by 7 paise to 66.62 against the US dollar in early trade on Friday because of sustained foreign fund outflows amid appreciation in the American currency overseas.
Dealers also attributed the fall to fresh demand for the US currency from importers and banks and a lower opening of the domestic equity market.
On Friday, the rupee ended steady at 66.55 on mild selling of the US dollars by banks and exporters in view of recovery in the domestic equity market.