The rupee depreciated 5 paise to 82.85 against the US dollar in early trade on Wednesday, as the strength of the American currency in the international market and elevated crude oil prices dented investors' sentiment.

Forex traders said the rupee is expected to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, a positive tone in domestic markets may support the rupee at lower levels.

At the interbank foreign exchange, the rupee opened at 82.82 against the dollar and touched an early low of 82.85 against the greenback.

On Tuesday, the rupee consolidated in a narrow range and settled for the day 5 paise lower at 82.80 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 102.88, lower 0.07 per cent.

The US dollar held steady as traders weighed hotter-than-expected US CPI inflation which came at 3.2 per cent against last month's figures of 3.1 per cent, traders said.

Brent crude futures, the global oil benchmark, rose 0.56 per cent to USD 82.38 per barrel.

On the domestic equity market front, Sensex advanced 39.69 points, or 0.05 per cent, to 73,707.65 points. The Nifty fell 10.10 points, or 0.05 per cent, to 22,325.60 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday as they bought shares worth Rs 73.12 crore, according to exchange data.

On the macroeconomic front, India's industrial production growth slowed to 3.8 per cent in January, while the February retail inflation at 5.09 per cent remained within the Reserve Bank's comfort zone for the sixth straight month, according to the latest government data.

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