The rupee depreciated 9 paise to close at 85.68 (provisional) against US dollar on Wednesday, on weak domestic equity markets and a rise in crude oil prices.
Forex traders said a slight recovery in the US dollar too weighed on the rupee as market players await the conclusion of India-US trade deal, which is at its final stage.
At the interbank foreign exchange, the domestic unit opened at 85.59 against the greenback and touched an intra-day high of 85.57 and a low of 85.75 against the greenback during the day.
At the end of Wednesday's trading session, the local unit was at 85.68 (provisional), down 9 paise over its previous closing price.
On Tuesday, the rupee appreciated 17 paise to close at 85.59 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 96.95.