The Indian rupee dropped by 20 paise to 44.30 against the US dollar in early trade on good demand for the greenback from banks and importers.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.25/26 per dollar as against the last weekend's level of 44.10/11 per dollar and moved down further to 44.30 per dollar before quoting at 44.21/22 per dollar at 1015 hours.
It moved in a range of 44.15 and 44.30 per dollar in the morning deals. Forex dealers attributed fall in the rupee to dollar demand from some banks and importers, even as the dollar was firm in the overseas market amid weakness in equities market.
The Indian benchmark sensex dropped by 211 points or 0.92 per cent in the early trade due to persistent selling. Oil was lower in Asian trade today as the under-pressure dollar made some modest gains against the major currencies, analysts said.
New York's main contract, light sweet crude for November delivery eased 13 cents to USD 81.12 a barrel.