The Indian rupee was down by 20 paise to Rs 50.37 against the US dollar in early trade today on persistent dollar demand from banks and importers despite weakness of the American currency in global markets.
Moving in line with the domestic equity market, the rupee resumed lower at Rs 50.35/36 per dollar on the Interbank Foreign Exchange — as against its previous close of Rs 50.17/18 per dollar — and moved down further to Rs 50.37 per dollar before quoting at Rs 50.20/21 per dollar at 1030 hours.
The domestic currency hovered in a range between Rs 49.97 and Rs 50.37 per dollar during morning deals.
Sustained dollar demand from banks and importers mainly affected the rupee value against the dollar, a forex dealer said.
Meanwhile, the U.S. dollar fell in the New York market on Thursday as the euro found its footing after a brutal rout, rebounding on hopes that Italian lawmakers will move quickly to implement economic reforms.
