The rupee dropped by eight paise to 55 rupees 3 paise against the American currency in late morning trade on month-end dollar demand from importers and banks. The rupee which resumed lower at 55 rupees 7 paise per dollar as against Monday's close of 54 rupees 95 paise per dollar, hovered in a range of 54 rupees 95 paise per dollar and 55 rupees 8 paise per dollar before quoting at 55 rupees 3 paise per dollar a short while ago.