The Indian rupee dropped 21 paise to trade at 54.47 against the US dollar on Monday on fresh demand for the US currency from banks and exporters.
The domestic currency resumed slightly lower at 54.27 per dollar against last weekend's level of 54.26 at the Interbank Foreign Exchange (Forex) Market and dropped further to 54.48 before quoting 54.47 at 10.40 am.
It hovered in a range of 54.24 and 54.48 per dollar during the morning deals.
Renewed dollar demand from banks and exporters in view of it being stronger in the overseas market mainly affected the rupee value, a dealer said.
Meanwhile, the BSE Sensex was trading 52.91 points lower at 19,286.99 in afternoon trade.
