The rupee declined by 24 paise to Rs 53.10 per US dollar in early trade today on sustained demand for the American currency from importers and some banks amid weakness in local equities and dollar’s firmness in overseas markets.
The rupee resumed lower at Rs 53.00/01 per dollar at the Interbank Foreign Exchange market against its previous close of Rs 52.86/87 per dollar. It moved down further to Rs 53.10 per dollar before quoting at Rs 53.02/03 per dollar at 10.30 am.
The domestic currency moved in a range between Rs 52.75 and Rs 53.10 per dollar in the morning deals.
Sustained dollar demand from importers and banks amid weakness in the equity market and a firming dollar overseas mainly affected the rupee value against the dollar, a forex dealer said.
In New York, the dollar was quoting broadly flat in Asian trading hours yesterday, retaining recent gains as investors exercised caution in light of Europe’s debt problems.
Meanwhile, the BSE Sensex fell 54.73 points or 0.36 per cent to 15,324.61 in the opening trade.