Rupee plunges by 36paise against $ in early trade

The rupee lost a hefty 36 paise to Rs 54.56 against the US dollar in early trade at the Interbank Foreign Exchange market on strengthening of the American currency against the euro overseas. Forex dealers said dollar rose against the euro after the European Union cut its economic growth forecast and the ECB chief stoked worries about how slowing growth is hurting the continent's top economy, Germany.

Besides, a weak opening in the domestic stock market also put pressure on the rupee. The BSE benchmark Sensex fell by 165.96 points, or 0.87%, to 18,736.45 in the morning trade.

The rupee had appreciated by a robust 23 paise to close at 54.20 on Wednesday on the back of capital inflows and dollar selling by exporters.