Mumbai, Jan 21 (PTI) The rupee fell sharply by 27 paiseto 45.80 against the US currency in late morning trade due tostrong dollar demand from banks and importers.
Sustained demand for dollar in view of firm US currencyin New York mainly affected the rupee value, a dealer said.
The dollar turned higher in New York yesterday,especially against the Japanese yen and British pound, aspositive US economic data trumped optimism about Europe andworries that China, now the world''s second-largest economy,might be pushed towards tightening monetary policy.
In active trade at the Interbank Foreign Exchange (Forex)market, the domestic unit opened lower at 45.63/64 a dollarfrom its previous close of 45.53/54 and dropped further to45.80 per dollar before quoting at 45.74/75 per dollar at1030hrs.
It moved in range of 45.63 per dollar and 45.80 perdollar in morning deals.
Meanwhile, crude oil prices were lower in Asian tradetoday as unexpected gains in US crude inventories placed adampener on energy demand, analysts said. New York''s maincontract, light sweet crude for March delivery, fell threecents to USD 89.56 per barrel.