Paring most of early losses, the rupee was quoting down by three paise at 54.40 in the late morning deals on Wednesday due to persistent dollar demand from importers amid weak local equity market, following withdrawal of support by DMK to the UPA government.

The local currency resumed lower at 54.54 per dollar as against the last closing level of 54.37 per dollar at the Interbank Foreign Exchange (Forex) Market and moved down further to 54.56 per dollar before quoting at 54.40 per dollar at 10.40 hrs (IST).

It moved in a range of 54.37 and 54.56 during the morning deals.

In New York, the euro slipped below 1.29 against the dollar on Tuesday following reports that the Parliament in Cyprus voted against a controversial plan to tax bank deposits as part of a bailout package.

More In: Markets | Business