Rupee drops

The Indian rupee declined on Wednesday on risk aversion fuelled by the US credit rating downgrade, putting the currency at risk of slipping below a key level.

The rupee was at 82.47 to the US dollar by 10.54 am IST, down from 82.2550 on Tuesday. US equity futures and Asian shares declined following the US credit rating downgrade, boosting demand for safe-haven dollar. Asian currencies were down up to 0.8 percent while the dollar index inched up.

"Do not think the dollar's move higher is sufficient to take it (USD/INR) to near 82.50, a level which is important in the current narrow range market," an FX salesperson at a bank said.

"I suspect that there are importers who have been caught napping and possibly a bit of short positions exiting."