The rupee fell further to 55.91, down 17 paise, against the dollar on persistent demand for the American currency from banks as it firmed against other currencies as well amid weak equity markets.
The rupee resumed lower at 55.80 per dollar as against the last closing level of 55.74 at the Interbank Foreign Exchange (Forex) Market.
It moved between 55.75 and 55.98 per dollar before quoting at 55.91 at 1030hrs.
Sustained dollar demand from banks and corporates on the back of strong dollar in the overseas market mainly affected the rupee value, a forex dealer said.
In New York, the dollar ended higher against the euro yesterday on lingering worries about Greece's debt crisis and the lack of clarity on the $125 billion bailout plan for Spain's banks.
The BSE 30-scrip Sensex was down 55 points or 0.33% in the early trade.