Rupee falls below Rs 46 vs dollar after 26 weeks

The Indian rupee fell below the Rs 46 per US dollar mark in early trade today after a gap of three-and-a-half months, shedding 36 paise to Rs 46.10 per dollar on persistent demand for the American currency from bank and importers amid dollar firmness overseas.

The rupee resumed lower at Rs 45.92/93 per dollar on the Interbank Foreign Exchange, as against last week's close of Rs 45.74/75 per dollar, and dropped further to Rs 46.10 before quoting at Rs 46.01/02 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 45.90 and Rs 46.10 per dollar during morning deals.

Sustained dollar demand from banks and importers on the back of a higher dollar in overseas markets and persistent foreign capital outflows in view of the weak equity market affected the rupee value against the dollar, a forex dealer said.

The dollar edged higher against most major rivals in Asian trade today, with some strategists saying that movement of the US currency is likely to be limited during the rest of the week.