Indian rupee fell by 19 paise on Friday to a fresh 23-month low of 45.76/77, against the US currency in early trade, following stronger dollar overseas as well as sustained capital outflows from equity markets.
In quiet trade at the Interbank Foreign Exchange (forex) market, the domestic currency resumed steady at 45.58.60 a dollar from its last close of 45.57/58 a dollar and later dropped to 45.76/77 a dollar in late morning deals.
Dealers said the strengthening dollar against basket of currencies continued to push the rupee down wards for the fourth consecutive day on Friday.
They said banks were also seen buying dollar, probably on behalf of importers in anticipation of continued surge in the greenback, which is likely to breach 46 level shortly.
Sustained capital outflows created acute shortage of the American currency in the exchange market, traders said.
Meanwhile, the Indian benchmark Sensex remained in the negative territory during early trade.