Rupee drops 28 paise in early trade

The rupee weakened by 28 paise to 63.58 against the U.S. dollar in early trade on Thursday at the Interbank Foreign Exchange due to month-end demand for the American currency from importers amid capital outflows.

Forex dealers attributed the fall in the rupee to month-end demand for the U.S. dollar from importers and sustained capital outflows amid a lower opening in the domestic stock market.

They said, however, dollar’s weakness against the euro as the chances of an U.S. interest rate hike faded, capped the rupee’s fall.

The rupee had lost 15 paise to end at 63.30 against the dollar in Wednesday’s trade.

Meanwhile, the benchmark BSE Sensex fell by 160.64 points or 0.59 per cent to 27,065.29 in early trade.