The rupee depreciated by 11 paise to 63.78 against the U.S. dollar in early trade on Wednesday at the Interbank Foreign Exchange due to appreciation of the American currency overseas riding on strong economic data.
Forex dealers said increased demand for the dollar from importers also weighed on the local currency, but a higher opening in the domestic equity market limited rupee’s fall. The rupee had recovered by five paise to close at 63.67 against the U.S. currency in the previous session due to fag-end selling of dollars by banks and exporters.
Meanwhile, the benchmark BSE Sensex rose 206.93 points, or 0.74 per cent, to 27,852.56 in early trade.
