Rupee tumbles by 52 paise vs dollar in late morning trade

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The rupee tumbled by 52 paise to 53.64 against the American currency in the late morning trade on persistent dollar demand from banks and importers in view of higher dollar in the overseas market.

In New York market, the dollar rose on Tuesday extending its longest string of daily gains since 2008, as investors sought a safe haven amid worries both about Greece's potential exit from the euro zone and the health of Spain's banks.

At the Interbank Foreign Exchange (Forex) market, the rupee opened lower at 53.54/55 per dollar against the last closing level of 53.12/13 per dollar and dropped further to 53.64 per dollar before quoting at 53.58/60 per dollar at 1030 hrs.

It moved in a range of 53.50 and 53.64 per dollar during the morning deals. Meanwhile, the Indian benchmark sensex declined further by 54 points, or 0.33 per cent, in the late morning trade.

The price of oil fell by 2 per cent on Wednesday, extending a week-long decline, as signs of global economic weakness raised concerns about energy demand. The benchmark US crude lost USD 1.94, or 2 per cent, to USD 96 per barrel in New York on Wednesday.