The rupee depreciated 10 paise to 66.32 against the dollar in early trade on Wednesday. The domestic currency had settled at 66.22 against the greenback in the preceding session, up 26 paise, or 0.39 per cent.

"The new range for the rupee now seems to be 65-67. It can also go down to 67.5. The weakness in the equity market has added to the pressure," said Suresh Nair, director, ADMISI Forex.

The local unit fell 3.5 per cent in the last one month. The trend could continue if the US Fed increases interest rates on September 17.

The dollar index, which tracks the greenback against a basket of six major currencies, was up 0.18 per cent at 95.62 on Tuesday.

As regards the dollar-rupee exchange rate, there is going to be a lot of volatility, said Ashutosh Khajuria, President (Treasury) at Federal Bank

"The dust has more or less settled, but there would be a gradual depreciation of the rupee vis-a-vis dollar. RBI would also not mind if there is a slow-paced depreciation of rupee, representing the real effective exchange rate," Khajuria said in an interview to ET Now.

All eyes will be on the US factory order numbers and crude inventory data scheduled for release later in the day.

Source:economictimes.indiatimes.com