10:51AM The Indian rupee dropped lower on Thursday, November 28, 2013 as month-end dollar demand from oil companies is seen slowly returning to the market. Moreover, broad dollar gains triggered by positive US economic data overnight and uncertainty in the US about the $85-billion-a-month fiscal stimulus is also weighing on the currency.
However, strength in domestic equities aided the unit. The domestic currency opened down by 25 paisa at Rs 62.40 against the US dollar but managed to climb to a high of 62.27 so far during the day.
In the spot currency market, the Indian unit was last seen trading at 62.33, weaker by around 18 paisa or 0.28% as compared to previous close at 62.15.
Rupee rose to a one-week high on Wednesday, helped by gains in the euro although gains remained under check as month-end dollar demand from oil companies continued to creep in at stronger rupee levels.
Domestic benchmark indices extended initial gains and hit fresh intraday high in morning trade as gains in Asian stocks boosted investors sentiment.
Asian stocks edged higher on Thursday, 28 November 2013, after US employment and consumer confidence reports boosted optimism in the worlds largest economy.
At the time of writing, the S&P BSE Sensex was up 172.57 points or 0.85% to 20,592.83 while the CNX Nifty was up 50.75 points or 0.84% to 6,107.85.
Meanwhile, in the global currency market, the yen languished at fresh lows against the euro and dollar early in Asia on Thursday on track for one of its worst monthly performance this year, while sterling climbed on more evidence of a stronger economic recovery at home.