Rupee drops by 8 paise against dollar in late morning trade

Fresh month-end dollar demand from importers, oil refiners affected the rupee value

The Indian rupee dropped by eight paise to 55.03 against the $ US in the late morning trade on month-end dollar demand from importers and banks.

The rupee resumed lower at 55.07 per dollar as against Monday's close of 54.95 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 54.95 and 55.08 before quoting at 55.03 per dollar at 10:45 hrs.

Fresh month-end dollar demand from importers, mainly oil refiners, affected the rupee value, a forex dealer said.

Oil prices were up in post-Christmas Asian trade today as traders warily eyed the soon-to-resume US budget talks on a deal to avert the fiscal cliff, analysts said.

New York's main contract, light sweet crude for delivery in February rose by 46 cents to $ US 89.07 a barrel.

Meanwhile, the Indian benchmark Sensex moved up by 45 points or 0.23% to 19,300.29 at 10:55hrs.