Rupee drops further by 19 paise

Mumbai

The rupee dropped further by 19 paiseto 62.58 against dollar in late morning trade today on persistent demand for the US currency from banks and importers despite its weakness overseas.

However, sustained capital inflows by foreign funds into equity market restricted the rupee’s fall, a forex dealer said. The Indian unit resumed slightly higher at 62.35 per dollar as against the last closing level of 62.39 at the Interbank Foreign Exchange (Forex). However, it dropped immediately to 62.66 before quoting at 62.58 per dollar at 1045 hours. The rupee moved in a range of 62.33 and 62.66 per dollar during the morning deals.

In New York market, the US dollar fell yesterday as investors focused on research suggesting that the Federal Reserve may lower its 6.5 per cent unemployment-rate threshold for raising short-term interest rates, which would effectively keep those rates near zero for longer than currently expected. Meanwhile, the BSE benchmark index Sensex was quoted higher by 26.99 points, or 0.13 per cent, to 20,921.93 at 1050 hours. PTI

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