Mumbai: The rupee fell by 7 paise to 63.98 a dollar in early trade at the Interbank Foreign Exchange market on Thursday as the American curreny strengthened overseas after the Federal Reserve upgraded its outlook on the US economy.
Besides, month-end demand for the US currency from importers also weighed on the rupee. Early gains in the stock markets, however, capped the rupee fall, dealers said.
The rupee had ended steady at 63.91 against the American currency yesterday on fag-end dollar demand from importers coupled with emergence of weak sentiment on the global front.
Meanwhile, the BSE benchmark Sensex rose by 156.72 points, or 0.56 per cent, to 27,720.15 in early trade today.