The rupee on Tuesday depreciated by 16 paise to 45.50 a dollar in early trade as the US currency strengthened against major world currencies.

At the Interbank Foreign Exchange (Forex) market, the Indian rupee fell by 16 paise to 45.50 a dollar. The rupee had rallied by 42 paise to close at a 16-month high of 45.34 yesterday on heavy selling of US currency by exporters.