Rupee sheds 52 paise to Rs 47.78 per dollar

The Indian rupee fell by 52 paise to Rs 47.78 per US dollar in early trade today on fresh dollar demand from banks and importers amid firmness of the American currency overseas and a fall in the domestic equity market.

The rupee resumed lower at Rs 47.55/56 per dollar on the Interbank Foreign Exchange, as against last weekend's close of Rs 47.26/27 per dollar, and declined further to Rs 47.78 per dollar before quoting at Rs 47.72/73 per dollar at 1030 hours.

Fresh dollar demand from banks and importers, in view of dollar firmness in overseas markets, mainly affected the rupee value against the American currency, a forex dealer said.

The dollar rose against the euro on Friday as news out of Europe left investors nervous about the outlook heading into the weekend.

Meanwhile, oil prices were down in Asian markets early today, with investors still worried over the debt crisis in the eurozone and the weak US economy.

New York's main contract, light sweet crude for delivery in October, was down $1.12 to $86.84 a barrel in morning trade today.

Meanwhile, the Indian benchmark Sensex was down by 133.35 points, or 0.79%, in early trade today.