Rupee drops to 9-week low at 50.90 vs dollar

Mumbai, Mar 22: The rupee today hit a fresh nine- week low at 50.90 against the US dollar in the late morning trade, due to persistent demand for the American currency from banks and importers.

Besides, a strong dollar in the overseas market also affected the rupee value, forex dealers said.

The rupee touched a 2-month low of 50.77 in early trade at the Interbank Foreign Exchange (Forex) market, as against the last closing level of 50.67/68 per dollar and dropped further to its 9-week low at 50.90 per dollar before quoting at 50.84/85 per dollar at 1030 hours.

The local unit touched 51.25 against dollar on January 17 this year. It hovered in a range of 50.75 and 50.90 per dollar during the morning trade.

In New York, the dollar gained against the euro yesterday as Federal Reserve Chairman Ben Bernanke testified on the European sovereign-debt crisis, while the British pound gave up gains after data showing an unexpected jump in February's UK public borrowing.

PTI