The Indian rupee fell by 8 paise to Rs 44.90 per US dollar in early trade today on fresh demand from importers and banks, despite firm domestic equity markets and strengthening of the dollar overseas.
Forex dealers said strengthening of the dollar against some currencies overseas and fresh demand from importers and banks mainly put pressure on the rupee, but the higher opening in the stock market restricted the losses.
At the Interbank Forex Exchange, the rupee resumed slightly higher at 44.80/81 per dollar, but later it declined to 44.85/86 per dollar as against the previous closing level of 44.82/83 per dollar and dropped further to 44.90 at 1030 hours.
The rupee moved in a range between 44.80 and 44.90 per dollar in morning deals.
Meanwhile, the euro hit a one—month high against the dollar yesterday as Greece agreed to new measures to cut its deficit, mitigating fears over its debt crisis and making investors shift their focus to the US economy.
The Bombay Stock Exchange benchmark Sensex was rose by 123.98 points, or 0.67 per cent, at 1015 hours.