The Indian rupee dropped by 17 paise to 44 rupees 59 paise against the American currency in the morning trade. This follows fresh dollar demand from banks and corporate on the back of higher dollar overseas.At the Interbank Foreign Exchange or Forex market, the local currency resumed lower at 44 rupees 48 paise per dollar as against the Monday's closing level of 44 rupees 43 paise per dollar.