 "Rupee extends decline against dollar, RBI steps in to support")
Mumbai - The rupee depreciated by 20 paise to 63.48 against the US currency in early trade today at the Interbank Foreign Exchange due to the dollar’s gains against its rivals overseas.
Forex dealers said besides the dollar’s gains against other currencies overseas on robust US economic growth, increased demand for the American unit from importers and a lower opening in the domestic equity market kept pressure on the rupee.
The dollar index is trading above key 90 level for the first time since March 2006 after strong US and UK economic data.
The RBI is seen intervening in the market at 63.50/55 levels, traders told Reuters.
The rupee had weakened by 3 paise to end at 63.28 against the American currency yesterday due to sustained capital outflows and fresh demand for the US currency from banks and importers.
Meanwhile, the benchmark BSE Sensex fell by 36.69 points, or 0.13 per cent, to 27,469.77 in early trade today.
Agencies