The Indian currency declined 27 paise to 44.72 as compared to the US dollar during the morning session on continued dollar demand from banking institutions and importers on account of higher dollar in abroad amid sustained capital outflows from overseas funds.

At the Interbank Foreign Exchange (Forex) market, the Indian unit belled the day on a lower note at 44.55/56 as against the overnight ending

point of 44.45/46 a dollar and hovered in the range of 44.54 and 44.72 before quoting at 44.67/68 a dollar at 1030hrs.

Continued demand of US currency from banking institutions as well as importers on the back of firm dollar in overseas market together with capital outflows from foreign funds affected the Indian currency value against the US currency.

The US dollar broadened gains against major contenders in the Asian market today, comprising euro, as a few market analysts looked at European debt troubles as the immediate fears even after Standard and Poor's lowered its viewpoint on US administration credit.

The 30-share index Sensex declined around 108 points (0.57%) during the morning trade.