Moving in line with equity market, the rupee dropped further by 25 paise to 62.66 per dollar in late morning trade on Friday on sustained demand for the US currency from banks and importers, triggered by its firm value overseas.

Persistent capital inflows from foreign funds failed to restrict the rupee’s fall following good dollar demand from importers.

The rupee resumed lower at 62.65 per dollar as against the last closing level of 62.41 at the forex market.

It dropped further to 62.72 before quoting at 62.66 per dollar at 1040 hrs (IST). It moved in a range of 62.62 and 62.72 per dollar during the morning deals.

In the New York market, the dollar firmed up against the euro on Thursday after the European Central Bank surprised currency traders with a cut in its benchmark interest rate.

Meanwhile, crude oil prices rose in Asian trade on Friday but faced downward pressure from easing supply concerns as well as speculation that the US Federal Reserve may begin to taper its stimulus programme soon, analysts said.

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