Rupee weakens 4 paise against dollar

An Indian man counts U.S dollars at a Western Union money transfer center in Ahmadabad, India, Monday, May 21, 2012. The Indian rupee hit a fresh all-time low of 55.03 against the US dollar Monday amid robust demand for the US currency from banks and importers. (AP Photo/Ajit Solanki)

The rupee depreciated 4 paise to 63.68 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange due to appreciation of the American currency overseas.

Forex dealers said fresh demand for the dollar from importers also weighed, but a higher opening in the domestic equity market limited rupee’s fall.

The rupee had snapped its 5-day losing trend against the US currency by ending higher by 20 paise at 63.64 in Tuesday’s trade on fresh selling of the greenback by banks and exporters on hopes of revival in foreign capital inflows.

Meanwhile, the benchmark Sensex rose 90.47 points, or 0.33 per cent, to 27,871.30 in early trade.