Mumbai: Rupee opened sharply lower against dollar at Rs 42.90/93 per dollar due to rising demand for the US currency at the Inter Bank Foreign Exchange market.
The domestic currency dropped by 24 paise to Rs 42.90/93, against the previous close of Rs 42.66/68, due to good demand for dollar from oil companies in view of rising crude oil prices in the international market.
In the global market crude oil prices were trading at about $137 a barrel.
Meanwhile, the BSE benchmark index, Sensex was down over 700 points at 1130 hrs on concerns over rising crude prices and inflation.
The rupee was quoted at Rs 42.89/91 per dollar at 1030 hrs.