The rupee trimmed its early losses against the US dollar, but was still quoting down by four paise to 61.54 in the late morning trade on bouts of dollar demand from banks and importers.
The rupee resumed lower at 61.56 per dollar as against the yesterday's closing level of 61.50 at the Interbank Foreign Exchange (Forex) Market.
Later it slid further to 61.60 before bouts of dollar selling helped recoup some of its losses. It was quoting at 61.54 at 1025 hours.
The rupee hovered in a range of 61.60-61.53 per dollar in morning deals.
Sustained capital inflows into equity is helping the rupee to some extent, dealers said.
In the New York market, the US dollar was steady against its major rivals in early trade after recouping some of its post-payrolls losses as an uptick in risk appetite sent US Treasury yields higher and underpinned Wall Street stocks.
The greenback kept to a narrow range with the US bond market - a key driver of the currency - closed on Tuesday for the Veterans Day holiday.
Meanwhile, the benchmark Sensex was trading higher by 99.43 pts, or 0.36 per cent, to 27,974.16 at 1040 hrs.
