Rupee drops 7 paise against dollar in early trade

TIL Desk/Business/Mumbai/ The rupee dropped further by 7 paise to 64.00 against the US currency in early trade at the interbank foreign exchange today as the dollar strengthened overseas. Dealers said increased demand for the US currency from importers and the greenback’s gains against other currencies overseas weighed on the rupee.

Currency traders also turned cautious ahead of release of key macro data, including IIP and inflation, later in the day. They said gains in domestic equity markets capped the losses.

The rupee opened lower at 63.98 per dollar against last close of 63.93 per dollar. It moved in a range of 64.01 per dollar to 63.98 per dollar in morning trade.

Yesterday, the rupee had retreated from its one-month high to end lower by 15 paise to 63.93 a dollar on overwhelming demand for the American currency from corporates and banks.

Meanwhile, the benchmark BSE Sensex regained the 32,000 -mark by surging 155.78 points, or 0.48 per cent, to 32,037.94 in early trade today.