Mumbai: The rupee dropped sharply by 25 to 65.07 per dollar in early trade today 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.

Yesterday, the rupee had gained 7 paise to end at over one-week high of 64.82 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 today.