Rupee drops 28 paise against dollar in early trade

The rupee weakened by 28 paise to 63.58 against the US dollar in early trade today at the Interbank Foreign Exchange due to month-end demand for the American currency from importers amid capital outflows.

Forex dealers attributed the fall in the rupee to month-end demand for the US dollar from importers and sustained capital outflows amid a lower opening in the domestic stock market.

They said, however, dollar's weakness against the euro as the chances of an US interest rate hike faded, capped the rupee's fall.

The rupee had lost 15 paise to end at 63.30 against the dollar in yesterday's trade.

Meanwhile, the benchmark BSE Sensex fell by 160.64 points or 0.59 per cent to 27,065.29 in early trade.