The rupee trimmed its initial losses but was still quoted lower by 9 paise to 62.35 per dollar in late morning deals today on good demand for the US currency by banks and importers amid its higher value overseas.
The rupee resumed lower at 62.38 per dollar as against the last closing level of 62.26 at the Interbank Foreign Exchange market and dropped further to 62.42.
However, it recovered afterwards to 62.31 before quoting at 62.35 per dollar at 1045 hours.It hovered in a range of 62.31-62.42 per dollar during the morning deals.
In New York market, the dollar was mixed yesterday, rising against the pound and euro but falling against the yen, as investors digested manufacturing data in a holiday week. US stocks and oil futures fell on the first trading day of 2014.
Meanwhile, the benchmark BSE-30 share Sensex dropped by 123.76 points or 0.59 per cent to 20,764.57 at 1045 hours.