Rupee drops further by 13 paise vs dollar

In line with the equity market, the Indian rupee dropped further by 13 paise to 44.90 against the US dollar today on persistent dollar demand from banks and importers on the back of a higher dollar in overseas market.

The rupee resumed lower at 44.87/88 per dollar at the Interbank Foreign Exchange as against yesterday's close of 44.77/78 per dollar and dropped further to 44.90 per dollar before quoting at 44.87/88 per dollar at 1030 hours.

It moved in a range between 44.80 and 44.90 per dollar in morning deals.

Sustained dollar demand from banks and importers in view of the firm dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.

The US dollar rallied by 2 per cent against the euro in New York yesterday after the inability of European officials to resolve their differences over how to response to the Greek debt crisis, which pushed the single currency to its lowest level this month.

Meanwhile, the Indian benchmark Sensex dropped by another 74.52 points, or 0.74%, in early trade on fears of a rise in interest rates.