The rupee fell sharply by 38 paise to 61.60 against the US dollar in early trade at the Interbank Foreign Exchange market today on demand for the American currency from importers amidst its higher value overseas.
Forex dealers said besides the dollar's gains against the euro overseas, increased demand from importers for the US currency and a lower opening in the domestic equity market also put pressure on the rupee.
Yesterday, the rupee strengthened by 27 paise to close at 61.22 against the US currency following suspected RBI intervention and dollar selling by exporters.
Meanwhile, the benchmark BSE Sensex plunged by 274.28 points, or 1.07 per cent, to 25,314.73 in early trade today.
