The rupee depreciated 4 paise to quote at a fresh one-week low of 67.18 against the US dollar in early trade on Monday on sustained demand for the American currency from importers and bankers.

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Besides, disappointing macro economic data with industrial production contracting by 0.8% in April and the retail inflation surging to 5.76% in May also weighed on the domestic unit.

However, the dollar's weakness against other currencies overseas and early gains in stock markets capped the losses, forex dealers said.

On Monday, the rupee had plunged by 38 paise to hit one-week low of 67.14 against the US dollar.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) Sensex recovered by 88.68 points or 0.33% to 26,485.45 in early trade.