Rupee snaps 2-day gains Vs dollar, drops 21 paise

The rupee today snapped its two-day gains against the dollar in late morning deals by losing 21 paise to 61.67 on fresh demand for the American currency from banks and importers.

The Indian currency resumed lower at 61.50 per dollar as against the last closing level of 61.46 at the Interbank Foreign Exchange (Forex) Market.

It dropped further to 61.78 before quoting at 61.67 per dollar (1040 hours).

The rupee moved in a range of 61.44 and 61.78 per dollar during the morning deals.

Crude prices rose 10 cents to USD 97.21 in Asian trade today on encouraging US corporate earnings, but analysts warned that worries over demand in the world's top oil-consuming nation would cap further gains.

In New York, the US dollar weakened to two-year low against the euro, indicating the euro zone's economic recovery.

Meanwhile, the Indian benchmark BSE-30 share index Sensex was trading almost flat, slightly lower by 3.14 points to 20,722.29 at 1045 hours.