Rupee drops 44 paise on dollar demand

The Indian rupee dropped by 44 paise to trade at 51.22 against the dollar on continued month end demand from dollar importers.

Rising crude prices and surging demand for crude has weighed on the Indian rupee. Most of the dollar demand in today's trade was for imports of crude oil.

The Reserve Bank of India is expected to intervene should the rupee continue to exhibit volatility. The rupee had recovered smartly in trade on Wednesday. However, the decline in Thursday's trade has come in the wake of weak global cues and falling share prices.

Foreign inflows which helps to prop the rupee has been tapering off since the last few days, which has also added pressure on the Indian rupee.

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