Rupee down by 17 paise at Rs 45.80 per US dollar

The Indian rupee was down by 17 paise at Rs 45.80 per US dollar in early trade today on month-end dollar demand from importers, despite weakness of the greenback in overseas markets.

The rupee resumed lower at Rs 45.70/72 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 45.63/64 per dollar, and hovered in a range between Rs 45.70 and Rs 45.80 per dollar during morning deals before quoting at Rs 45.75/76 per dollar at 1030 hours.

Month-end dollar from importers, mainly oil refiners, was primarily responsible for the rupee's slide against the dollar, a forex dealer said.

In New York, the dollar slipped against other major currency rivals yesterday as weak data out of the US and better news from Europe supported the euro amid further expectations that the Federal Reserve will take action to try to buoy the US economy.

Currency traders were also keeping close tabs on the solid gains in US stocks yesterday, an indicator that investors are shifting back to riskier assets.

Rupee extends slide against US dollar

The Indian rupee extended its fall against the US dollar for the eighth consecutive session in early trade today on persistent dollar demand from banks in view of dollar firmness in overseas markets.

The rupee resumed lower at Rs 45.30/31 per dollar on the Interbank Foreign Exchange as against its previous close of 45.25/26 per dollar and dropped further to Rs 45.50 per dollar before quoting at 45.35/36 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 45.30 and Rs 45.50 per dollar during morning deals. Persistent dollar demand from banks and exporters on the back of a higher dollar in international markets affected the rupee value against the dollar, a forex dealer said.

The US dollar edged higher against most currencies during Asian trade today as risk aversion mounted after another hefty sell-off on Wall Street and heightened fears of the European debt crisis spreading.

The dollar index, a measure of the greenback's performance against six other major global currencies, climbed to 74.731 from 74.688 in late North American trade yesterday.