Rupee down five paise against dollar

Fresh demand for the dollar from banks and importers affected the rupee

The rupee dropped five paise to 60.17 against the American currency in morning trade today on fresh demand for the dollar from banks and importers despite the US unit's weakness in the overseas markets.

The rupee resumed slightly higher at 60.10 per dollar as against the last closing level of 60.12 at the Interbank Foreign Exchange (Forex) market on initial selling of the American currency by banks.

However, it dropped immediately to 60.20 on fresh demand for the dollar from banks and importers before quoting at 60.17 per dollar at 1000 hours.

It hovered in a range of 60.08 and 60.20 per dollar during the morning deals.

In New York market, the dollar fell against the euro yesterday after data showed the US economy shrank 2.9% in the first quarter, which could validate the Federal Reserve's commitment to keep interest rates low.

Meanwhile, crude oil prices saw a mixed pattern of trading in Asia in early trade today ahead of the release of fresh US economic data.

US benchmark West Texas Intermediate rose 13 cents to $106.63 while Brent crude eased two cents to $113.98 in mid-morning trade.

The benchmark BSE Sensex dropped 131.21 points, or 0.52%, to 25,182.53 at 1000 hours.