Rupee loses vs dollar for eighth day in a row

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.