Rupee at 32-month low of Rs 51.50 per US dollar

The Indian rupee fell by 16 paise to a 32-month low of Rs 51.50 per US dollar in early trade on the Interbank Foreign Exchange today on sustained demand for the American currency from banks and importers.

The domestic currency had tumbled by 44 paise to Rs 51.34/35 per dollar in the previous session amid dollar demand from banks and importers and firmness of the American currency overseas.

Heavy dollar demand from some banks and importers, mainly oil refiners, weighed on the rupee's fortunes, dealers said.

They said concerns over foreign fund outflows from the domestic equity market and dollar demand from state-run oil refiners also reduced the rupee's attractiveness.

Meanwhile, the BSE benchmark Sensex fell by 191.22 points, or 1.16 per cent, to 16,180.29 in opening trade on Monday.