Mumbai: The Indian rupee dropped further by 21 paise to Rs 46.20 per US dollar in early trade today on month-end dollar demand from importers and banks, coupled with a higher dollar in overseas markets.
The rupee resumed lower at Rs 46.10/12 per dollar at the Interbank Foreign Exchange, as against its previous close of Rs 45.99/46.00 per dollar, and moved down further to Rs 46.20 per dollar before quoting at Rs 46.15/16 per dollar at 1030 hours.
Sustained dollar demand from importers, mainly oil refiners, affected the rupee value against the dollar, a forex dealer said.
Persistent foreign capital outflows in view of weak equity markets was another reason behind the falling rupee value.
The Indian benchmark Sensex moved down 17 points, or 0.11 per cent, in early trade today.