Rupee drops in early trade, oil demand key

The rupee fell to 52.99/53 against the US dollar versus its previous close of 52.87/88 in early trade, tracking overnight losses in the euro compared to levels seen during the end of domestic trade on Wednesday.

The slight dip in the euro levels in the domestic session on Wednesday hurt sentiment for the local unit.

However, most other Asian units were stronger compared to the dollar, and that may limit a sharp fall in the rupee.

Traders expect the good dollar demand from oil firms to continue to pressure the pair higher, and the Indian currency is expected to trade in the 52.80 to 53.30 band today.

The stock market performance will be another key element which is expected to provide direction to the pair.

Copyright: Thomson Reuters