The rupee dropped by 87 paise to 63.34 against the American currency after a gap of nearly eight weeks on persistent dollar demand from importers and banks on the back of higher dollar overseas. The rupee resumed lower at 63 per dollar against the last week-end level of 62.47 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 63.34 per dollar before quoting at 63.26 per dollar at 12.38 p.m. It moved in a range of 62.94 per dollar and 63.34 per dollar during the morning deals. Sustained dollar demand from importers and banks in view of firm dollar overseas mainly affected the rupee value against the dollar, a forex dealer said. In New York, the American currency jumped last Friday after the US created twice as many jobs in October as Wall Street had expected, sparking yet another round of discussion about when the Federal Reserve could slow its bond buys. Meanwhile, the Indian benchmark Sensex dropped further by 129 points or 0.62 per cent to 20,537.37 at 10.50 a.m. Call money rates The overnight call money rates, the rate at which banks borrow short term funds from each other, opened lower at 8.75 per cent from previous close of 8.80 per cent. Yield on the 10-year benchmark 7.16 per cent 2023 government bond hardened sharply to 9.06 per cent from its previous close of 8.99 per cent. The bond prices closed weaker at Rs 88 from Rs 88.45 per dollar.

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