Mumbai: The rupee on Friday dropped by 12 paise to 52.80 against the US dollar in the late morning trade on fresh dollar demand from banks despite the latter being weak in overseas market amidst persistent capital inflows.

The rupee resumed marginally higher at 52.65 per dollar as against the last closing level of 52.68 at the Interbank Foreign Exchange (Forex) Market.

However, it declined immediately to 52.88 a dollar before quoting at 52.80 at 1100 hours.

It moved in a range of 52.56 and 52.88 per dollar during the morning deals.

In New York, the US dollar lost ground against major rivals yesterday as a sharp drop in jobless claims last week dulled the greenback's safe-haven appeal. Investors also took a downgrade of Spain's debt rating to near-junk status in stride, helping the euro to recover.

Meanwhile, the Indian benchmark Sensex moved up by 19 points or 0.10 pc to 18,823.65 at 1100 hours.

(Agencies)

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