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Forex »
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Rupee drops early tracking peers
March, 09th 2010

The rupee dropped marginally early on Tuesday, weighed by some weakness in regional peers after the recent gains, while traders said they would closely monitor the local shares for further direction. Most Asian units were weaker compared to the dollar.

Shares were trading down 0.1 per cent taking cues from weak Asian peers and on caution after rising more than 5 per cent in about 10 days. At 9:02 am the partially convertible rupee was at 45.55/56 per dollar, marginally weaker than 45.53/54 at close on Monday when it hit 45.38 during trade, its strongest since Jan 12.

The rupee gained 1.1 per cent last week, its best since a 1.9-per cent rise in the week to Jan 8. The index of the dollar against six major currencies was slightly higher.

The euro eased on Tuesday, while higher-yielding currencies slipped against the dollar and the yen as demand for riskier assets took a breather.

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