The rupee resumed lower at Rs 54.65 per dollar against the last closing level of Rs 54.36 per dollar at the Interbank Foreign Exchange (Forex) and dropped further to Rs 54.67 per dollar before quoting at Rs 54.51 per dollar at 1050 hrs.
It moved in a range of Rs 54.51 per dollar and Rs 54.67 per dollar in the morning deals.
Sustained dollar demand from banks and importers in view of firm dollar in the overseas market mainly affected the rupee value against the dollar, a foerx dealer said.
Meanwhile, the Indian benchmark Sensex rose by 87.69 pts or 0.46 pct to 18,949.23 at 1050 hrs.