The Indian rupee depreciated by 16 paise against the US dollar in early trade on capital outflows by foreign fundsfrom equities. The domestic unit fell by 16 paise to trade at 46.64 a dollar. The rupee had closed lower by 28 paise at 46.49 a dollar in the previous session. Forex dealers said weak opening on the stock markets following capital outflows by foreign funds in tandem with tumble on global markets, mainly weighed on the rupee sentiment.