Mumbai, India (BBN)-Indian rupee dropped 3 paise at 63.62 against dollar in early trade on Thursday  at the Interbank Foreign Exchange due to appreciation of the American currency overseas.

Forex dealers said fresh demand for the dollar from importers also weighed on the local currency, reports the Press Trust of India.

Besides, a lower opening of the domestic equity market put pressure on the rupee, they said.

Yesterday, the rupee had lost one paise to end almost flat at 63.59 against the US dollar due to uneven demand and supply of the American currency from banks.

Meanwhile, the benchmark BSE Sensex fell 93.91 points or 0.33 per cent at 27,635.76 in early trade on Thursday.