The rupee dropped 12 paise to 61.91 against the American currency in the late morning trade on fresh dollar demand from banks and importers despite firm local equity market.
The Indian unit resumed lower at 61.85 per dollar as against the last closing level of 61.79 at the Interbank Foreign Exchange (Forex) Market and dropped further to 61.98 before quoting at 61.91 per dollar at 1100 hrs.
It hovered in a range of 61.85-61.98 per dollar during the morning deals.
The rupee had gained 16 paise to close at over one-week high of 61.79 against the U.S. dollar on Tuesday after exporters sold the American currency as the forex and money markets remained closed yesterday for “Christmas” holiday.
Meanwhile, crude edged higher in early trade in Asian markets on supply concerns following escalating violence in oil-producer South Sudan, but gains were capped as dealers sat on the sidelines awaiting fresh leads after the festive season.
New York’s main contract, West Texas Intermediate for February delivery, was up 27 cents at $99.49.
The Indian benchmark Sensex rose by 55.03 points or 0.26 per cent to 21,087.74 at 1100 hrs.