Rupee falls by 24 paise against US dollar

Mumbai, Dec 5: The Indian rupee fell by 24 paise to an early low of Rs 51.44 per US dollar in early trade today (Dec 5) on fresh demand for the American currency from banks and corporates on the back of a higher dollar in overseas markets.

The rupee resumed lower at Rs 51.27/28 per dollar on the Interbank Foreign Exchange, as against the previous weekend's close of Rs 51.20/21 per dollar, and moved down further to Rs 51.44 per dollar before quoting at Rs 51.39/40 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 51.23 and Rs 51.44 per dollar during morning deals.

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

In New York, the dollar moved up against the euro and other major currency rivals last Friday, as key meetings on the euro zone debt crisis prompted traders to unwind big positions.

Meanwhile, crude oil firmed up in Asian trade today after Iran's military reportedly said it had shot down a US drone, analysts said.

New York's main contract, light sweet crude for delivery in January, was up by 33 cents at USD 101.29 a barrel.

PTI