Mumbai, Oct 4 (PTI): The Indian rupee was down by 29 paise at Rs 49.44 per US dollar in early trade today on sustained demand for the American currency from banks and importers amid a rise in the dollar value overseas.
The rupee resumed lower at Rs 49.40/41 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 49.15/16 per dollar, and dropped further to Rs 49.44 before quoting at Rs 49.28/29 per dollar at 1030 hours.
The domestic currency hovered in a range between Rs 49.20 and Rs 49.44 per dollar during the morning deals.
Banks and importers were keen to increase their dollar holdings in view of dollar firmness in overseas markets, a forex dealer said.
The US dollar climbed to fresh highs in the New York market yesterday to trade at its strongest level since mid-January as concerns intensified over whether Greece will receive the next tranche of aid from international lenders.