Rupee drops 5 paise against dollar

The rupee dropped five paise to 59.43 against the US currency in morning trade on Wednesday on persistent demand for the American unit from banks and importers despite lower dollar in the overseas market.

The rupee resumed lower at 59.40 per dollar as against the last closing level of 59.38 at the Interbank Foreign Exchange (Forex) Market.

It dropped further to 59.48 before quoting at 59.43 per dollar at 1000 hours.

It moved in a range of 59.34 and 59.48 per dollar during the morning trade.

Banks and importers preferred to increase their dollar position at the current level, a forex dealer said.

However, in New York market, the dollar inched down against major rivals yesterday as investors looked ahead to a European Central Bank meeting that is likely to bring additional easing, which could support the case for dollar strengthening in the longer run.

Meanwhile, the Sensex moved down by 12.62 points, or 0.05 per cent, to 24,845.97 at 1000 hours.