Continuing its slide, the rupee on Tuesday dropped further by 12 paise to 60.71 against the American currency in the early trade on persistent dollar demand from banks and importers triggered by higher greenback overseas.

The rupee resumed lower at 60.66 per dollar as against the last closing level of 60.59 at the Interbank Foreign Exchange market and dropped further to 60.80 per dollar before quoting at 60.71 at 1000 hours.

It hovered in a range of 60.61 per dollar and 60.80 per dollar during the morning deals.

Sustained dollar demand from banks and importers on the back of firm dollar in the overseas market mainly affected the rupee value against the dollar, a Forex dealer said.

However, persistent foreign capital inflows into equity market restricted the rupee’s fall against the dollar, he added.

Meanwhile, the benchmark Sensex rose to an all-time high of 22,828.58 before quoting at 22,808.50 at 1000 hours, showing a rise of 43.67 points, or 0.19 per cent.

In New York market, the U.S. dollar rose to a two-week high against the Japanese yen on Monday after Japan’s trade deficit expanded by more than expected last month.

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