The rupee depreciated 29 paise to 52.79 rupees against dollar in early trade today on the Interbank Foreign Exchange market, due to increased demand for the American currency from importers. In the previous session the domestic unit lost a hefty 42 paise to close at three-and-a-half-month low of 52.50 rupees against the US currency, owing to strong dollar demand from banks and importers amid a sharp fall in equity markets.