Mumbai: The rupee dropped sharply by 25 paise to 65.07 per dollar in early trade on Friday amid gains in the US currency in global markets. Forex dealers said the dollar strengthened against major global currencies which hit the rupee sentiment. The euro dropped to three-month lows after the European Central Bank extended its bond purchases and reduced the chances that it would hike interest rates in 2018.
On Thursday, the rupee traded between the high and the low of 64.73 and 64.91, respectively. The rupee rose 7 paise to close at one week high of 64.82 against the US dollar on sustained selling of the American currency by banks and exporters. Meanwhile, the benchmark BSE Sensex maintained its record setting spree by gaining another 123.49 points, or 0.37 per cent, to 33,270.62 in early trade on Friday .