The rupee was down by 18 paise at Rs 46.16 per US dollar in early trade today on persistent dollar demand from banks and importers amid weak domestic equity market and strengthening of the American currency overseas.
The rupee resumed lower at Rs 46.11/12 per US dollar at the Interbank Foreign Exchange market against its previous close of Rs 45.98/99 per dollar. It moved down further to Rs 46.16 per dollar before quoting at Rs 46.09/10 per dollar at 10.30 a.m.
The domestic currency hovered in a range between Rs 46.00 and Rs 46.16 per dollar in the morning deals.
Sustained dollar demand from banks and importers in view of dollar’s firmness in overseas markets was the major factor behind the fall in the rupee value against the dollar, a forex dealer said.
The dollar gained against most major rivals in early trade in the Sydney market as Europe’s lingering debt problems pushed investors toward investments perceived as less risky.
Meanwhile, the Bombay Stock Exchange benchmark Sensex was down by 119 points or 0.71 per cent in the early trade.