Rupee drops for 3rd day, slips to 62.16 against US dollar

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Weak local stocks and sustained dollar demand from importers led the rupee to its biggest fall in a month on Thursday. Weak local stocks and sustained dollar demand from importers led the rupee to its biggest fall in a month on Thursday.
SummaryRupee had lost 58 paise to close at 61.83 against the dollar in the previous session.

In line with equity market, the rupee dropped another 33 paise to 62.16 per dollar in late morning deals today, as it continued its slide for the third day on sustained demand for the American currency from importers.

A sharp spike in consumer price inflation in November and a worse-than-expected contraction in industrial production in October also affected the rupee sentiment, a dealer said.

The rupee opened lower at 62.10 per dollar as against the previous closing level of 61.83 at the Interbank Foreign Exchange (Forex) Market.

It dropped further to 62.18 before quoting at 62.16 per dollar at 1045 hours.

It hovered in a range of 62.06-62.18 per dollar during the morning deals.

In New York market, the dollar rose yesterday after US retail sales gained momentum in November, adding to speculation about when the Federal Reserve could begin slowing its monthly bond purchases.

Meanwhile, the Indian benchmark BSE-30 share barometer Sensex dropped by 138.94 points or 0.66 per cent to 20,786.67 at 1045 hours.

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