The rupee failed to maintain initial gains and was quoted lower by seven paise to 63 per dollar in late morning deals today on fresh demand for the US currency from banks and importers on the back of its higher value overseas.
The rupee resumed higher at 62.90 per dollar as against the last closing level of 62.93 at the Interbank Foreign Exchange (Forex) Market and moved up further to 62.85.
However, it failed to maintain initial gains and was quoted at 63.00 per dollar at 1045 hours.
It hovered in a range of 62.85 and 63.07 per dollar during the late morning deals.
In New York, the US dollar rose above 101 Japanese yen yesterday as investors continued to focus on monetary policy instead of economic data. The Bank of Japan left monetary policy unchanged, as expected.
Meanwhile, the BSE benchmark index Sensex rose by 67.58 points, or 0.33 per cent, to 20,296.63 at 1045 hours.