Mumbai:  The rupee fell by 30 paise to Rs 53.40 per dollar in early trade on Monday on sustained demand for the US currency from importers on the back of firm dollar in overseas markets.

The rupee resumed lower at Rs 53.30/31 per dollar on the Interbank Foreign Exchange, as against the last weekend's level of Rs 53.10/11 per dollar, and moved down further to Rs 53.40 per dollar before quoting at Rs 53.33/35 per dollar at 1030 hrs.

The domestic currency moved in a range between Rs 53.25 and Rs 53.40 per dollar during morning deals.

Dealers said increased demand for the dollar from importers and concerns over the government's widening fiscal deficit mainly weighed on the rupee sentiment.

In New York, the U.S. dollar pared some of its gains for the year on Friday, though it's up for 2011 versus most major currencies other than the top-performing Japanese yen.

Meanwhile, the BSE benchmark Sensex was marginal gain of seven points, or 0.05 percent, at 15,461.92 at 1015 hours.