The Indian rupee trimmed initial losses against the American currency, but was quoted still lower by 3 paise to 62.39 on mild dollar demand from banks and importers.
The Indian rupee resumed lower at 62.40 per dollar as against the last closing level of 62.36 at the Interbank Foreign Exchange market and dropped further to 62.55 on good dollar demand from banks.
However, it recovered immediately to 62.37 per dollar before quoting at 62.39 at 1040hrs.
It hovered in a range of 62.37-62.55 per dollar during the morning session.
In the global market, Japan's Nikkei Stock Average fell sharply in early trade as the yen regained some lost ground, while the Australian dollar tumbled after the country's disappointing third-quarter growth data.
The tone for Asia was cautious as regional markets dropped ahead of the November labour report from the US, due to be out on Friday, a much-watched indicator used to gauge whether the Federal Reserve will start to roll back its bond-buying programme.
Meanwhile, the benchmark Sensex moved down by 22.96 points, or 0.11 pct, to 20,832.76 at 1045hrs.