The Indian rupee resumed lower at 61.65 per dollar as against the last weekend's level of 61.54 at the Interbank Foreign Exchange Market (Forex) market.
It hovered in a range of 61.57-61.66 before quoting at Rs 61.59 per dollar at 1045 hours.
Initially, the rupee declined on good dollar demand from banks but trimmed its initial losses on hopes of more foreign capital inflows following recovery in the equity market.
In New York, the US dollar gained against most rivals on last Friday, as a week of data reassured investors that December's dismal employment report wasn't indicative of a broader shift in the economy.
Meanwhile, the IBSE Sensex rose by 134.82 points or 0.64 per cent to 21,198.44 at 1045 hours.