Rupee drops by 12 paise to 52.85 vs dlr in late morning trade

Mumbai, May 2: The rupee today dropped further by 12 paise to 52.85 against the

dollar in the late morning trade on persistent demand for American currency from banks and importers on the back of strong global cues.

The rupee resumed higher at 52.65/66 per dollar at the Interbank Foreign Exchange (Forex) market as against the last closing level of 52.73/74 but declined immediately to 52.85 per dollar before quoting at 52.77/78 a dollar at 1030 hours.

The domestic currency moved in a range of 52.55 and 52.85 per dollar during the morning trade. Sustained dollar demand from banks and importers in view of firm dollar in the overseas market mainly affected the rupee value against the dollar, a forex dealer said.

In New York, the US dollar turned up against the euro and the Japanese yen yesterday after a positive US report on manufacturing, but the Australian dollar made the biggest move among major currencies, weakening as the country's central bank delivered a larger-than-expected interest-rate cut.

PTI