Moving in line with the equity market, the Indian rupee dropped further by 13 paise to Rs 44.40 per US dollar in early trade today on persistent dollar demand from banks and importers on the back of a higher dollar in overseas markets.
The rupee resumed lower at Rs 44.37/38 per dollar on the Interbank Foreign Exchange, as against its previous close of 44.27/28 per dollar, and moved down further to Rs 44.40 per dollar before quoting at Rs 44.32/33 per dollar at 1030 hours.
The domestic currency hovered in a range between Rs 44.30 per dollar and Rs 44.40 per dollar during morning deals.
Sustained dollar demand from banks and importers in view of the higher dollar in overseas markets and weak equity markets mainly affected the rupee value against the American currency, a forex dealer said.
In the New York market, the Senate approval of the US debt bill gave the dollar much needed relief yesterday, although the greenback stayed weak against the Swiss franc.
The Indian benchmark Sensex dropped further by 133 points, or 0.73%, in early trade today.
