The rupee pared its initial sharp losses to recover marginally by one paisa against the US dollar at Rs 62.18 in late morning trade today on mild bouts of dollar selling from banks and exporters.
The Indian currency resumed sharply lower at 62.26 as against yesterday's close of 62.19 at the Interbank Foreign Exchange (Forex) market here.
It further slid to Rs 62.30 on sustained dollar demand from importers before quoting 62.18 at 1035 hours.
The local currency hovered in a range of 62.17-62.30 per dollar during late morning trade.
Rally in domestic equities is capping the rupee losses, a forex dealer said.
In New York market, the US dollar is trading higher against most of its major rivals and was hovering at one-month high against the yen in early trade, bolstered by gains in treasury yields.
Meanwhile, the benchmark BSE Sensex was trading higher by 75.15 points, or 0.27 per cent, to 28,430.77 in late morning trade.
