Rupee drops 29 paise against dollar in early trade
Mumbai: The rupee was trading lower by 29 paise at 66.82 against the American currency in early trade today at the Interbank Foreign Exchange market as the dollar strengthened overseas amid a lower opening of the domestic equity market.
Forex dealers said increased demand for the US currency from importers and the greenback's gains against other currencies overseas after minutes of the Federal Reserve s last meeting pointed at an interest rate hike this year, put pressure on the rupee.
On Monday, the rupee had gained 15 paise to end at 66.53 against the American currency on hopes of more foreign capital inflows.
Forex market remained closed on Tuesday and Wednesday on account of Dussehra and Muharram, respectively. Meanwhile, the benchmark BSE Sensex fell by 265.21 points, or 0.94 per cent, to 27,817.13 in early trade today.