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Rupee drops 21 paise against USD 

Prime News, National, Business, Mumbai, January 16:- The rupee extended losses in late morning trade, dropping by 21 paise to Rs 63.70 against the greenback in late morning deals on sustained dollar demand from importers and banks amid widening trade deficit.

The rupee came under pressure as trade deficit widened to three-year high at USD 14.88 billion in December,government data showed on Monday, imports surged nearly 21.1 per cent year-on-year to USD 41.90 billion last month while exports grew 12.4 per cent on-year to USD 27.03 billion.

The rupee opened lower at 63.60 per dollar from Monday’s closing level of Rs 63.49 at the inter-bank foreign exchange today.

The domestic unit witnessed volatility and hovered between Rs 63.75 and Rs 63.59 during morning deals, it was trading at Rs 63.70 at 11 am.

“A struggling dollar overseas somewhat was cushioning the rupee’s larger losses,” a dealer said.

The US dollar was mixed against its major rivals in early Asian trade, while the Euro inched lower taking a breather after having rallied on the back of optimism about the Euro zone’s economic outlook.

The 30-share BSE Sensex was trading flat, marginally lower by 11.19 points, or 0.03 per cent, at 34,832.32 at 10:45 am.

-(NGB, Inputs: Agencies)

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