Gold importers retreat with rupee weakness

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, retreated as the weakness in the overseas market was offset by a fall in the rupee.

* At 0948 GMT, the most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.32 percent lower at 29,476 rupees per 10 grams.

* "Yesterday evening, there was some activity, but in the morning since rupee touched 54.74, the benefit of correction in gold has been wiped off by rupee," said a dealer with a private bank in Mumbai.

* "If at all rupee appreciates again like it did before the budget, we might see activity," the dealer added.

* The rupee, which continued its weakness on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* India held its gold import duty unchanged in Thursday's national budget, defying industry expectations that the world's biggest bullion buyer would increase rates to curb demand and rein in a record current account deficit.

* Market participants expect demand to pick up in April, when the new fiscal year and wedding season starts.

(Reporting by Siddesh Mayenkar; Editing by Anand Basu)