Rupee drops by seven paise to 44.83 vs dlr

Mumbai: The Indian rupee dropped by 7 paise to 44.83 against the US dollar in early trade Tuesday on fresh demand for the American currency from banks and importers on the back of a rise in dollar value in overseas market.

The Indian rupee resumed lower at 44.80/81 per dollar at the Interbank Foreign Exchange as against Monday`s closing level of 44.76/77 per dollar and dropped further to 44.83 per dollar before quoting at 44.78/79 at 1030 hours.

It hovered in a restricted range between 44.75 and 44.83 in morning deals.

Renewed demand for dollars from banks and importers in view of the firm dollar in global markets mainly affected the rupee value against the dollar, a forex dealer said.

The dollar extended gains against the euro Monday in the New York market after Jean-Claude Juncker, who heads a team of euro-zone finance ministers, said the shared currency is overvalued and the region needs a better exchange rate policy.