UPDATE: Rupee plummets by 23 paise vs dollar

The Indian rupee dropped further by 23 paise to Rs 44.70 per US dollar in early trade today on persistent demand for the American currency from banks and importers in view of dollar firmness in global markets amid weak domestic equities despite inflows from foreign funds.

The rupee resumed lower at Rs 44.57/58 per dollar on the Interbank Foreign Exchange against its previous close of Rs 44.47/48 per dollar and moved down further to Rs 44.70 per dollar before quoting at Rs 44.63/64 at 1030 hours.

The domestic currency moved in a range between Rs 44.55 per dollar and Rs 44.70 per dollar in morning deals.

Sustained dollar demand from banks and importers on the back of the higher dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.

The euro tumbled to a seven-week low versus the dollar and touched a record low against the Swiss franc yesterday in the New York market on fears that Europe's debt crisis could engulf Italy.

Meanwhile, the Indian benchmark Sensex dropped by 172 points, or 0.92%, in early trade today.