The Indian rupee fell to a six-month low of Rs 45.70 per US dollar in early trade today on persistent demand for the American currency from banks and importers amid strengthening of the dollar in global markets and weak domestic equities. The rupee resumed lower at Rs 45.47/48 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 45.41/42 per dollar, and moved down further to a six-month low of Rs 45.70 per dollar before quoting at Rs 45.62/63 per dollar at 1030 hours. The domestic currency moved in a range between Rs 45.47 and Rs 45.70 per dollar during morning deals. A strong dollar in global markets mainly affected the rupee sentiment, a forex dealer said. Persistent foreign capital outflows in view of weakness in the domestic equity market was another factor behind the fall in the rupee value. The Indian benchmark Sensex was down by 131 points, or 0.78%, in early trade today. The dollar index edged higher in early trade in Asian markets. The dollar index, which measures the greenback against a basket of six currencies, was trading at 73.885, up from 73.697 recorded in late North American trading yesterday.

Source