The rupee trimmed its initial losses against the US dollar but was still quoted lower by 3 paise to 61.97 on month-end demand for the American currency from importers.
The rupee resumed lower at 61.96 per dollar as against the last closing level of 61.94 at the Interbank Foreign Exchange market and dropped further to 62.03 on initial dollar demand from importers, mainly oil refiners.
However, it trimmed its initial losses and was quoted at 61.97 on some selling of dollars by banks and exporters on the back of persistent foreign capital inflows into the equity market.
It moved in a range of 61.95-62.02 per dollar during the late morning deals.
In New York market, the dollar fell against the Japanese yen yesterday, taking cues from declines in US stocks.
Meanwhile, the benchmark Sensex continued to rule firm in the late morning trade and was quoted at 20,907.03 at 1050 hours, showing a rise of 54.56 points or 0.26 per cent from its last close.