Rupee has first drop in 5 days, down 21 paise at 62.57 vs USD

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The rupee fell against the dollar for the first time in five days, losing 21 paise to close at 62.57 today, as local stocks declined.
Fresh dollar demand from importers, mainly oil refiners, and a firm US currency overseas outweighed support for the rupee from continued foreign fund inflows in domestic shares.
At the interbank foreign exchange market, the rupee resumed higher at 62.25 a dollar from the previous close of 62.36 and touched a high of 62.24.
It dropped to a low of 62.68, in line with the fall in equities, before recovering some ground to settle at 62.57, a loss of 21 paise or 0.34 per cent.

The rupee had appreciated by 135 paise, or 2.12 per cent, in the previous four sessions.
The benchmark 30-share Sensex fell 255.69 points or 1.22 per cent as investors booked profits and global markets turned cautious. Overseas investors bought a net Rs 1,041.61 crore of shares yesterday, provisional data with the bourses showed.

"Today, rupee traded weak against the dollar, taking cues from local equities which closed negative," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "We have seen dollar buying pressure from oil companies, which pulled the dollar below 62.50 levels."
The dollar index, an indicator of the US currency against six major global rivals, was up 0.12 per cent. The Federal Reserve is scheduled to release the minutes of its October meeting, which will be scrutinised for signs of when the stimulus programme would be tapered.

Fed chief Ben Bernanke yesterday said it may be some time before monetary policy returns to more normal settings.
Data on US retail sales and housing are scheduled for release today.