Mumbai: The rupee depreciated by 35 paise to 56 against the US dollar in early trade Friday as the euro continued to remain pressured by the uncertain outlook for the fate of Greece- as well as that of the entire currency bloc.
The euro traded down 0.1 percent at USD 1.2525 after falling to its lowest since July 2010, at USD 1.25155, on Thursday.
The dollar index measured against key currencies hovered near a 20-month high of 82.376 hit on Thursday, due to its safe-haven appeal.
Forex dealers said besides dollar's gains in the overseas markets on persistent eurozone worries, a weak opening in the stock market also put pressure on the local unit.
However, the Reserve Bank's indication that it may sell dollars directly to oil companies capped the losses.
The rupee had ended higher by 35 paise at 55.65 after plunging to a new intra-day low of Rs 56.38 against the dollar in the previous session.
Meanwhile, the BSE benchmark Sensex declined by 69.50 points, or 0.43 percent, at 16,152.80 in early trade.
With Agencies Input
First Published: Friday, May 25, 2012, 10:18