Mumbai:The rupee dropped 26 paise to 61.33 against the dollar in late morning trade today on fresh demand for the US currency from banks and importers due to higher value of the greenback overseas.
The rupee resumed lower at 61.26 per dollar as against the last weekend's level of 61.07 at the Interbank Foreign Exchange market. It hovered in a range of 61.22-61.34 per dollar before quoting at 61.33 at 1040 hours, showing a loss of 26 paise or 0.43 per cent.
The domestic unit had gained 4 paise to close at a new three-month high of 61.07 against the US dollar on Friday, helped by heavy capital inflows.
In New York, the dollar turned broadly higher on last Friday after data showed the US economy in February added far more jobs than expected, providing a more upbeat read on economic growth this year.
Meanwhile, the benchmark 30-share Sensex fell by 87.42 points, or 0.40 per cent, to 21,832.37 at 1040 hours.