The rupee on Tuesday plunged by 56 paise, or almost 1 per cent, to trade at 58.43 against the dollar in early trade at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the U.S. currency overseas.

Forex dealers said besides dollar’s gains against the yen overseas as investors await the outcome of a US Federal Reserve meeting, increased demand from oil importers for the American currency and a weak opening in the domestic stock market also put pressure on the rupee.

The rupee fell by 36 paise to close at 57.87 against the US currency in the previous session on fresh dollar demand from importers and some banks even as RBI kept its policy rates on hold, and stock markets posted gains.

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