Rupee down by 25 paise to Rs45.26 against US dollar

The Indian rupee fell by 25 paise to Rs45.26 against the US dollar today on sustained demand for the American currency from banks and importers amid a higher dollar in overseas markets and weakness in the domestic equity market.

Forex dealers said strengthening of the dollar against major currencies overseas and a lower opening in the domestic stock market mainly put pressure on the rupee.

At the Interbank Forex Exchange, the rupee resumed lower at Rs45.14/15 per dollar as against the previous closing level of Rs45.01/02 per dollar and moved down further to Rs45.26 at 10:30 hours.

The rupee moved in a range between Rs45.14 and Rs45.26 per dollar in morning deals.

The dollar was higher against the euro in early trade today, getting a lift against its European counterpart amid renewed fears about eurozone sovereign debt.

Meanwhile, oil was down in Asian trade today after the investor sentiment took a hit amid worries about weak US demand, analysts said. New York's main contract, light sweet crude for July delivery, lost 95 cents to $99.15 a barrel.

The Bombay Stock Exchange benchmark Sensex was down by 169.20 points, or 0.92%, at 10:50 hours.