Mumbai, May 2: The rupee depreciated 4 paise to 66.70 against the US dollar in early trade today on fresh demand for the greenback from importers and banks ahead of US Federal Reserve's two-day policy meeting outcome. Dealers attributed the rupee's fall to fresh demand for the US dollar and sustained foreign fund outflows. However, a higher opening in the domestic equity markets and weakness in the American currency against some currencies in the global market ahead of the Fed policy announcement capped the rupee fall, they said.

On Friday, the rupee had gained 9 paise to close at 66.66 on dollar-selling by exporters and a stellar rally in local equities. Forex market remained closed on Monday and Tuesday on account of 'Buddha Purnima' and 'Maharashtra Day', respectively. Meanwhile, the benchmark BSE Sensex was trading higher by 196.79 points, or 0.55 percent, at 35,357.15 in opening deals.

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