Mumbai, Apl 23 - The Indian rupee ended at three and half month low to 52.50/51 against the American currency on good dollar demand from banks and importers on the back of higher dollar in the global market amidst sharp fall in equity markets.

The rupee resumed slightly lower at 52.09/10 per dollar as against the last weekend's level of 52.08/09 per dollar and dropped further 52.58 per dollar before ending at 52.50/51 per dollar, showing a net loss of 0.42 paise or 0.81 per cent from its last weekend's level. It had ended at 52.51/52 per dollar on January 9, 2012.

The domestic currency hovered in a range of 52.00 per dollar and 52.58 per dollar during the day.

Fresh dollar demand from banks and importers in view of higher dollar in the overseas market mainly affected the rupee value against the dollar, a forex dealer said.

The Indian benchmark sensex dropped by 277 points or 1.60 per cent today.

In Sydney market, the dollar index reclaimed some lost ground in the early trade after the first round of the French presidential election and ahead of Chinese and European manufacturing surveys due later in the global trading day.

In London, the euro retreated from two-week highs against the dollar today and was likely to stay under pressure on concerns the euro zone debt crisis could spread to higher-rated countries, economic slowdown and rising political risks. PTI