Rupee sheds 20 paise to early low of Rs 51.91/dollar

The Indian rupee continued on its downward spiral in early trade today, shedding 20 paise to a low of Rs 51.91 per dollar on persistent demand for the American currency from banks and importers on the back of a higher dollar overseas, before making a marginal recovery.

The rupee resumed lower at Rs 51.75/76 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 51.71/72 per dollar, and dropped further to Rs 51.91 per dollar before quoting at Rs 51.85/86 per dollar at 1030 hours.

The domestic currency hovered in a range between Rs 51.70 and Rs 51.91 per dollar during morning deals.

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

In Sydney, the dollar inched up against the euro in early trade as investors eyed a rate decision by the European Central Bank later in the day, as well as the outcome of a summit of European leaders on the euro zone sovereign debt crisis.