Paring some of the initial losses, the rupee was down by 16 paise to 61.93 against the US dollar in the late morning trade in view of cautious approach of banks ahead of RBI's policy review today.
The rupee resumed lower at 62.05 per dollar as against the last closing level of 61.77 at the Interbank Foreign Exchange (Forex) Market.
It moved down further to 62.20 per dollar on good demand for the US currency from banks.
However, it recovered afterwards to 61.90 before quoting 61.93 per dollar in late morning deals, on mild selling of the American currency.
In New York market, the dollar recovered slightly against most major rivals yesterday but still looked bruised following the beating it took after the Federal Reserve maintained its pace of monetary stimulus.
In Asian markets, crude oil prices extended losses today as investors took profits after a recent rally.
Meanwhile, the Indian benchmark BSE-30 share index Sensex dropped by 57 points or 0.27 per cent, to 20,590.00 at 1045 hours.
