The rupee dropped sharply to 64.20 per dollar in late morning trade on Monday on good demand for the US currency from banks and importers due to rise in crude oil prices.

The rupee resumed lower at 63.65 per dollar as against the last weekend’s level of 63.20 at the Interbank Foreign Exchange (Forex) Market and dropped further to 64.20 at 10.40 hours (IST), showing a fall of 100 paise or 1.58 per cent.

Oil prices climbed in Asian trade on Monday, as disappointing US housing data tempered expectations of stimulus tapering by the Federal Reserve.

In the global market, the US dollar swung between small gains and losses against major currencies after Federal Reserve officials wrapped up a yearly gathering, appearing ready to start slowing monetary stimulus next month.

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