The Indian rupee dropped by 7 paise to 44 rupees 83 paise against the US dollar in early trade today. This followed fresh demand for the American currency from banks and importers on the back of a rise in dollar value in overseas market. The Indian rupee resumed lower at 44 rupees 80 paise per dollar at the Interbank Foreign Exchange as against Monday's closing level of 44 rupees 76 paise.The dollar extended gains against the euro on Monday in the New York market after Jean-Claude Juncker, who heads a team of euro-zone finance ministers, said the shared currency is overvalued and the region needs a better exchange rate policy.