The rupee today erased initial gains and slipped 32 paise, logging its biggest daily drop in over two weeks, to end at 62.42 versus the dollar in line with weakness in domestic stocks and sustained demand of the American currency from oil importers.
The rupee commenced higher at 62.05 a dollar from last close of 62.10 -- a three-week high. It improved further to a high of 62.03 due to higher opening in domestic equities and initial dollar selling by exporters.
Later, it dipped on sluggish stock markets to a low of 62.46, before concluding at 62.42, logging a fall of 32 paise or 0.52 per cent. In last straight two days, it had gained 33 paise or 0.53 per cent. Today's drop is the biggest since 44-paise fall on January 27.
"In the last couple of sessions, we have witnessed that India's trade data, IIP and CPI have all been encouraging. However this set of data has failed to give support to the rupee. On the global front, dollar index is trading flat amid absence of major events or data releases," said Abhishek Goenka, Founder & CEO, India Forex Advisors.
The benchmark S&P BSE Sensex today plunged by 255.14 points, or 1.25 per cent, while FIIs injected Rs 211.99 crore yesterday, as per provisional data with stock exchanges.
The dollar index, an indicator of other six major global currencies, was sharply down by 0.47 per cent ahead of key economic data later in the day today.
