Rupee falls 5 paise to 85.53 against US dollar in early trade

MUMBAI: The rupee dropped 5 paise to 85.53 against the US dollar in early trade on Monday, as dollar demand from importers, foreign fund outflows and a muted trend in domestic equities dented investor sentiments.

Forex traders said the rupee witnessed heavy volatility on Friday and opened on a weak note on Monday amid significant dollar demand linked to the expiry of December currency futures and maturing positions in the outstanding forwards.

At the interbank foreign exchange, the rupee opened on a weak note and fell to 85.53 against the American currency, registering a fall of 5 paise over its previous close.