The rupee pared some of its early losses but still quoted 15 paise down at 55.25 against the American currency in the late morning trade.
The rupee resumed lower at 55.13 per dollar as against the last closing level of 55.10 per dollar at the Interbank Foreign Exchange (Forex) Market and declined further to 55.37 per dollar before quoting at 55.25 per dollar at 1050 hrs.
Traders said dollar demand from banks and importers on the back of higher dollar in overseas market put the Indian currency under pressure.
It moved in a range of 55.13 per dollar and 55.37 per dollar during the morning deals.
"The rupee is still expected to be weak with some dips in between," said India Forex Advisors in a report.
In New York, the dollar turned higher yesterday as attention shifted back toward whether and when Greece will get its next installment of bailout funds.
Meanwhile, the Indian benchmark BSE Sensex rose by 80.13 points, or 0.44 per cent, to 18,409.45 at 1100 hrs.