The rupee on Friday fell by 5 paise to 52.73 against the U.S. dollar in early trade at the Interbank Foreign Exchange market, due to strengthening of the American currency overseas.

Forex dealers said besides dollar’s gains against euro in the overseas markets, a weak opening in the stock market also put pressure on the domestic currency.

The rupee had closed 37 paise higher at 52.68 on Thursday on the back of capital inflows worth USD 200 million, amid Finance Minister P. Chidambaram playing down any serious threat of a rating downgrade by S&P.

Meanwhile, the BSE benchmark Sensex fell by 65.90 points, or 0.35 per cent, to 18,738.85 in early trade on Friday.

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