The Indian rupee declined by three paise to 60.26 against the US currency in morning trade on persistent dollar demand from banks and importers on the back of higher dollar in the overseas market.
The Indian rupee resumed lower at 60.30 per dollar as against the last closing level of 60.23 at the Interbank Foreign Exchange market. It eased further to 60.31 before quoting at 60.26 per dollar at 1030 hours.
The domestic unit hovered in a range of 60.25-60.31 per dollar during the morning trade.
Renewed dollar demand from banks and importers in view of higher dollar in the international market mainly affected the rupee against the dollar, a forex dealer said.
In New York Market, the US dollar rose against the Australian dollar yesterday as gold futures dropped more than two per cent and investors anticipated Chinese data that is likely to show a slowing of growth.
Meanwhile, the benchmark 30-share Sensex moved up by 12.05 points, or 0.05 per cent, to 22,496.98 at 1030 hours.