The rupee drifted lower by 9 paise to 66.80 against the US dollar in early trade at the Interbank Foreign Exchange today after the American currency gained strength overseas.
Forex dealers said that month-end demand for the greenback from importers and gains against other currencies overseas as invetors keenly await US President Donald Trump’s speech at a joint session of Congress on Tuesday , put pressure on the rupee.
They said, however, a higher opening of the domestic equity market capped the rupee’s losses.
The rupee had strengthened to close at a fresh three-and-a-half month high of 66.71, appreciating by 11 paise on the back of sustained selling of the American dollar by exporters and banks.
Meanwhile, the benchmark BSE Sensex went up by 50.53 points, or 0.18 per cent, to 28,863.41 in the opening trade.