UPDATE: Rupee down 34 paise vs dollar in late morning trade

The rupee today dropped by 34 paise to 54.41 in late morning trade due to renewed dollar demand from banks and importers as the US currency strengthened in the overseas market.

The rupee resumed lower at 54.37 per dollar as against the last closing level of 54.07 per dollar a the Interbank Foreign Exchange (Forex) Market and dropped further to 54.43 per dollar before quoting at 54.41 per dollar at 1040 hours.

Fresh dollar demand from banks and importers on the back of higher dollar in the overseas market affected the rupee value, a forex dealer said.

In New York, the dollar stretched an advance against its rivals yesterday as the US Federal Reserve indicated it will consider making changes in its ultra-loose monetary policy.

But the British pound hit a 13-month low as support for additional quantitative easing strengthened at the Bank of England.

Meanwhile, the BSE benchmark Sensex dropped by 158 points, or 0.81%, 19,484.38 at 1050 hours.