Rupee dips 20 paise against USD in early trade

The Indian rupee today fell by 20 paise against the US currency in early trade on expectation of heavy capital outflows and increased dollar demand from importers.

At the Interbank Foreign Exchange (Forex) market, the domestic unit declined by 20 paise to 48.81 a dollar over its previous close of 48.61.

Forex dealers said rupee turned weak on anticipation of increased capital outflows as the stock markets may open on a weak note in line with other Asian bourses, which are down up to 1.5 per cent in morning trade.

Besides, huge dollar demand from importers, particularly refiners, led to the downward movement in rupee.