Rupee drops by 30 paise against dollar in early trade

A man counts U.S. dollars at a currency exchange outlet in New Delhi, India, Friday, July 29, 2011. The Indian rupee ended almost flat against the U.S. dollar in a volatile trading session Thursday, weighed down by falling shares, a sluggish euro and demand for dollars from oil importers, according to news agencies. The White House and Congress are locked in a stalemate over the amount by which the U.S. debt ceiling should be raised and spending cut to help avoid a default by the world's largest economy. (AP Photo/Manish Swarup)

The rupee fell by 30 paise to Rs. 53.40 per dollar in early trade today on sustained demand for the US currency from importers on the back of firm dollar in overseas markets.

The rupee resumed lower at Rs. 53.30/31 per dollar on the Interbank Foreign Exchange, as against the last weekend’s level of Rs. 53.10/11 per dollar, and moved down further to Rs. 53.40 per dollar before quoting at Rs. 53.33/35 per dollar at 1030 hrs.

The domestic currency moved in a range between Rs. 53.25 and Rs. 53.40 per dollar during morning deals.

Dealers said increased demand for the dollar from importers and concerns over the government’s widening fiscal deficit mainly weighed on the rupee sentiment.

In New York, the U.S. dollar pared some of its gains for the year on Friday, though it’s up for 2011 versus most major currencies other than the top-performing Japanese yen.

Meanwhile, the BSE benchmark Sensex was marginal gain of seven points, or 0.05 per cent, at 15,461.92 at 1015 hours.