Rupee drops further by 11 paise versus dollar

The Indian rupee dropped further by 11 paise to 45.00 against the American currency in early trade on persistent dollar demand from banks and importers on the back of dollar firmness in the overseas market.

The rupee resumed slightly lower at Rs 44.92/93 per dollar at the Interbank Foreign Exchange as against yesterday's close of Rs 44.89/90 per dollar and dropped further to 45.00 per dollar before quoting at Rs 44.91/92 per dollar at 1030 hours.

It hovered in a range between Rs 44.80 and Rs 45.00 per dollar in morning deals.

Sustained dollar demand from banks and importers in view of dollar firmness in the New York market mainly affected the rupee value against the dollar, a forex dealer said.

In New York, the dollar strengthened yesterday as Federal Reserve Chairman Ben Bernanke highlighted obstacles to a US recovery and euro zone debt concerns, prompting a sell-off in stocks and raising the value of the greenback as a safe haven.