Rupee drops by 37 paise vs dollar in the late morning

The rupee dropped further by 37 paise to 62.46 against the American currency in the late morning trade on persistent dollar demand from banks and importers on the back of higher dollar in the overseas market.
Fears of slow down in the foreign capital inflows into Indian equity market following decision of Federal Open Market Committee on tapering also affected the rupee sentiment, a forex dealer said.
The stock market sentiment was hit adversely after the Federal Open Market Committee (FOMC), following a two-day monetary policy meeting, yesterday announced plans to cut its monthly bond purchases to USD 75 billion from USD 85 billion.

The rupee resumed lower at 62.25 per dollar as against the last closing level of 62.09 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 62.47 per dollar before quoting at 62.46 per dollar at 1100hrs.
It hovered in a range of 62.25-62.47 per dollar during the morning deals.
In the New York market, the U.S. Dollar surged above 104 yen yesterday after the Federal Reserve said it would slow the rate of its monetary stimulus by USD 10 billion from January.
Meanwhile, the Indian benchmark sensex dropped by 189 points or 0.91 per cent to 20,670.70 at 1100 hrs.