The Indian rupee was down by 33 paise to Rs 49.90 per US dollar in early trade today on persistent demand for the American currency from banks and importers amid a firm dollar sentiment in overseas markets and weakness in domestic equities.
The rupee resumed lower at Rs 49.60/61 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 49.57/58 per dollar, and dropped further to Rs 49.90 per dollar before quoting at Rs 49.75/76 per dollar at 1030 hours.
The domestic currency hovered in a range between Rs 49.52 per dollar and Rs 49.90 per dollar during morning deals today.
Sustained dollar demand from banks and importers in view of the firm dollar sentiment in the New York market amid a fall in the domestic equity market mainly affected the rupee value against the dollar, a forex dealer said.
In New York, US dollar holdings were being seen as the ultimate safe haven amid the ongoing market stress.
The Indian benchmark Sensex dropped further by 115 points, or 0.71%, in early trade today.
