Moving in line with equity market, the rupee fell by 20 paise to 62.30 against the American currency in late morning trade on Thursday on fresh dollar demand from banks and importers.

The Indian unit resumed higher at 62.05 per dollar as against the last closing level of 62.10 at the Interbank Foreign Exchange (Forex) Market, on initial selling of dollars by exporters in view of its weakness overseas.

However, it washed out initial gains and was quoted at 62.30 per dollar at 1045 hours on fresh demand for the US currency from banks amidst fall in the equity market.

In New York, the dollar fell against the British pound yesterday after the Bank of England raised its projections for UK growth in 2014. However, analysts warned that gains against the dollar could be limited.

Meanwhile, the Indian benchmark BSE Sensex dropped by 79.13 points or 0.39 per cent to 20,369.36 at 1045 hours.

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