In line with the equity market, the rupee recovered some initial losses today but was still down 28 paise at 54.29 a dollar on demand for the American currency from banks and importers, political crisis after a key ally Trinamool Congress withdrew support to the UPA government.
In the overseas forex markets, however, the dollar was weak.
The rupee resumed lower at 54.30 a dollar as against the Tuesday's closing level of 54.01 at the Interbank Foreign Exchange (Forex) Market.
The local currency hovered in a range of 54.24 and 54.42 per dollar before quoting at 54.29 at 1040 hrs.
The BSE 30-stock index, Sensex, was down 97 points or 0.53% at 18,398.79 at 1050 hrs from Tuesday's close.
In New York, the dollar slipped against the euro and other major currencies yesterday after the US economic data boosted equities.
