The Indian rupee dropped by 13 paise to 53.95 against the American currency in the late morning trade on dollar demand from banks and importers on the back of higher dollar in overseas market.

The rupee resumed lower at 53.85 per dollar as against the Wednesday’s closing level of 53.82 per dollar at the Interbank Foreign Exchange (Forex) Market and declined further to 53.96 per dollar before quoting at 53.95 at 1040 hrs.

It moved in a range of 53.85 per dollar and 53.95 per dollar during the morning deals.

In New York market, the US dollar trimmed its loss against the yen yesterday as investors sorted out the stance by the world’s largest industrialised economies on recent weakness in Japan’s currency.

Meanwhile, the Indian benchmark Sensex failed to maintain initial gains and was quoted lower by 28 points or 0.14 per cent to 19,580.48 at 1050 hrs.

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