Indian Rupee Drops To 2-day Low Against US Dollar

The Indian rupee lost ground against its US counterpart on Thursday as risk-aversion mood generated in the market amid concerns about growth prospects in the world's two largest economies, which eventually prompted investors to move away from risk-associated assets.

Extending losses for a second consecutive session, the benchmark 30-share Sensex hit an intra-day low of 16,921 in the afternoon but the benchmark index cut losses in subsequent trading and end down 63 points or 0.37 percent at 17,059. The broader Nifty index fell by 16 points or 0.31 percent at 5,179.

Month-end dollar demand from importers also dragged the rupee below the 51.0 mark again after a gap of a day, shedding by more than 1.2 percent to 51.4250 from Wednesday's closing quote of 50.7850. The next barrier for the pair is seen around the 51.50 level and a move beyond this mark could set the weakest level for the domestic unit since mid-January.