The Indian rupee slipped by 13 paise to 62.49 per US dollar after initial gains on fresh bouts of dollar demand from banks and importers.
The rupee resumed higher at 62.25 per dollar as against the last closing level of 62.36 per dollar at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by banks and exporters in view of persistent capital inflows from foreign funds.
However, it failed to maintain opening gains and was quoted lower at 62.49 per dollar at 10.40 am.
It moved in a range of 62.25-62.50 per dollar during the late morning deals.
In the New York market, the dollar inched lower against some rivals yesterday as a lack of major US economic data shifted the emphasis to the broader monetary-policy landscape across the globe.
Meanwhile, the Indian benchmark sensex dropped by 76.86 points or 0.37 per cent to 20,813.96 at 1045hrs.