The Indian rupee dropped 0.3 percent on Wednesday, off a two-week low struck during trade, as the dollar's rise against major currencies triggered demand for the US currency from importers such as oil refiners. "The dollar's strength versus pound and euro raised some (dollar) demand from oil companies," said a senior dealer with a foreign bank.

The partially convertible rupee ended at 45.93/94 per dollar, extending losses for a second day, after hitting 45.9950, its weakest since January 6. It had closed at 45.78/79 on Tuesday. One-month offshore non-deliverable forward contracts were at 45.97/46.06, slightly weaker than the spot rate. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were at 45.9725 and 45.96 respectively.

Copyright Reuters, 2010