The rupee today depreciated by 16 paise to 61.68 against the US dollar in early trade on the Interbank Foreign Exchange market due to increased demand for the US currency from importers ahead of the RBI's policy review meeting.Dealers attributed the rupee fall to a cautious approach adopted by participants ahead of the RBI's second quarter monetary policy review today.Meanwhile, the BSE benchmark Sensex fell by 38.50 points, or 0.19 per cent, to trade at 20,531.78 in early trade today.