Rupee drops tracking weak shares, dollar rise

The rupee dropped on Thursday morning tracking weak domestic shares which raised concerns about sustained foreign fund withdrawals while the dollar's gains versus majors also dented sentiment.

At 9:26 a.m., the partially convertible rupee was at 45.07/08 per dollar, weaker than 45.00/01 at close on Wednesday.

Indian shares dropped 0.6% in early trade on Thursday, with banks leading the decline, as a surge in oil prices pressurised Asian peers.

The index of the dollar against six major currencies was up 0.1% at 76.801 points and would be watched for direction during the day. The index had been at 76.686 points when the rupee market closed on Wednesday.