The Indian rupee dropped by 58 paise to a lifetime low of Rs 52.73 per US dollar in early trade today on persistent demand for the American currency from banks and importers amid sustained foreign capital outflows from the equity market. The rupee resumed lower at Rs 52.36/37 per dollar Foreign Exchange, as against its previous close of Rs 52.15/16 per dollar, before dropping further to Rs 52.73 per dollar.
The rupee was quoting at Rs 52.64/65 per dollar at 1030 hours. The domestic currency hovered in a range between Rs 52.33 and Rs 52.73 per dollar during morning deals. Continued dollar demand from importers, mainly oil refiners, to meet month-end requirements amid expectations of a further rise in the dollar value overseas due to lingering European debt worries was responsible for the rupee's decline against the dollar, a forex dealer said.
Meanwhile, the BSE benchmark Sensex recovered by 109 points, or 0.69%, in early trade.
