Rupee drops to over 3-week low vs dollar

Mumbai: The Indian rupee dropped to nearly three and a half week low to close at 61.62 against the Greenback, down 21 paise, on sustained dollar demand from importers ahead of a key US jobs report. The renewed strength of dollar is keeping emerging market currencies under immense pressure, a forex dealer noted. At the Interbank Foreign Exchange market (Forex), the domestic unit commenced lower at 61.52 a dollar as against Wednesday's close of 61.41 and moved in a range of 61.4875 and  61.6750. It finished at 61.62, showing a loss of 21 paise, or 0.34 per cent.   

This is the weakest level for the rupee since 61.83 on October 16. "The USD/INR pair will take cues from the non farm payroll data scheduled for release later in the day," said India Forex Advisors. Non-farm payroll figures out of Washington later Friday will give a better handle on the state of the US economy. Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 1,030.85 crore on Wednesday, as per provisional data released by the stock exchanges. 

The US Greenback surged to more than five-year high against major currencies. Meanwhile, the benchmark Sensex retreated from its record-breaking run and settled lower at 27,868.63, down 47.25 points or 0.17 per cent.