Rupee dips by 21 paise to 46.42/43 a dollar in early trade

The Indian rupee fell by 21 paise to 46.42/43 against the greenback in morning trade today due to month-end dollar demand and sustained capital outflows amid weakening dollar overseas.     

In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed steady at 46.19/21 a dollar from its overnight close of 46.21/22 a dollar but later dropped to 46.42/43 a dollar at 1030 hrs.     

Forex dealers said the rupee remained under pressure as oil refiners stepped up dollar purchases for their month-end import payments even as global crude oil prices traded below $107 a barrel in Asian markets this morning.     

They said a sharp slide in equity markets across Asia also weighed on the rupee sentiment.       

Indian benchmark Sensex was down by 171 points or 1.26 per cent at 1025 hrs today.      

Meanwhile, the US dollar fell against major currencies in Asian markets this morning after a $700 billion plan to save the financial system reportedly failed to make any headway.