The rupee recovered some of the initial losses today but was still down 8 paise at 55.77 against the dollar on demand for the American currency from banks and importers.
Dollar has also made gains against other currencies in the overseas markets.
The rupee resumed lower at 55.81 per dollar as against the last closing level of 55.69 at the Interbank Foreign Exchange (Forex) market. It moved down further to 55.88 per dollar, before quoting at 55.77 at 1040 hrs.
In New York market, the dollar rose against the euro yesterday.
Meanwhile, the BSE 30-stock index, Sensex, was quoting flat 17,671.38 at 1045 hrs, 7.43 points down from yesterday's close.