Rupee loses 56 paise to early low of Rs 52.31 per US dollar

The Indian rupee fell 56 paise to Rs 52.31 per US dollar in early trade on Friday on sustained demand for the American currency from banks and importers on the back of a strong dollar overseas.

The rupee resumed lower at Rs 52.25/26 per dollar on the Interbank Foreign Exchange, against its previous close of Rs 51.75/76 per dollar, and moved down further to Rs 52.31 per dollar before quoting at Rs 52.19/20 per dollar at 10.30 am.

Sustained dollar demand from banks and importers in view of the rising dollar in overseas markets was the main reason behind the fall in the rupee value, a forex dealer said.

In the New York market, the euro fell against the US dollar on Thursday after the European Central Bank's chief dashed hopes that the central bank would immediately expand its bond purchase programme to help distressed European countries.

Meanwhile, the BSE benchmark Sensex was down by 221 points in early trade on Friday.