Rupee drops 22 paise despite strong equity markets

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Rupee drops 22 paise despite strong equity markets
The rupee dropped 22 paise against the dollar despite strong equities and renewed dollar inflows from foreign funds.

The rupee was trading at 55.45, down 22 paise against the US dollar at 11.25 am IST. Dealers say there has been a renewed demand for dollar as crude prices have been rising and cost of crude imports have been rising.

The rupee is likely to be under pressure as there are huge foreign currency loans that are due in the next few months. The Economic Times had reported recently that the rupee could fall as much as 4%, on account of maturing loans of almost $8 billion.

Meanwhile, the rising crude oil prices, due to favourable news developments in the euro region is likely to aggravate the pressure on the rupee. Brent Crude has surged to $116 a barrel on fresh position in the futures market on hopes of a further stimulus from the Federal Reserve.

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