Rupee down by 44 paise vs dollar in early trade

The Indian rupee was down by 44 paise at Rs 51.78 per US dollar in early trade today due to the pull-out of foreign capital from the equity market amid persistent dollar demand from banks and importers despite weakness of the American currency overseas.

The rupee resumed lower at Rs 51.43/44 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 51.34/35 per dollar last week, and declined further to Rs 51.78 per dollar before quoting at Rs 51.73/74 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 51.43 and Rs 51.78 per dollar during morning deals.

In the Sydney market, the dollar lost ground against the yen and euro in early trade as investors' tweaked their positions on global debt concerns and reports that US lawmakers will soon announce that negotiations on a deficit-reduction package have failed.

Meanwhile, the BSE benchmark Sensex continued on its downslide, losing 148 points, or 0.89%, in early trade today.