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The rupee dropped by 27 paise to 44.72 against the American currency in the morning session on persistent dollar demand from banks and importers on the back of higher dollar in the overseas market amid sustained capital outflows from foreign funds.
At the Interbank Foreign Exchange (forex) market, the domestic currency opened lower at 44.55/56 against the overnight closing level of 44.45/46 per dollar and hovered in the range of 44.54 and 44.72. At 10.30 a.m., the rupee was quoting at 44.67/68 per dollar.
Sustained dollar demand from banks and importers on the back of firm dollar in the overseas market coupled with capital outflows from foreign funds affected the rupee value against the dollar, a forex dealer said.
The US dollar extended its gains against major rivals in the Asian market today, including euro, as some analysts viewed European debt problems as an immediate concern even after ratings agency Standard and Poor’s lowered its outlook on US government credit.
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