The rupee depreciated by 5 paise to close at 72.74 against the US dollar on Wednesday tracking losses in the domestic equity markets and strengthening American currency in the global markets.
US bond yields rising to one-year high due to strong recovery prospects also hit the rupee sentiment, analysts said.
At the interbank forex market, the local unit opened at 72.90 against the greenback and witnessed an intra-day high of 72.72 and a low of 72.92.