In line with the equity market, the rupee trimmed initial losses and was still quoted 22 paise lower at 62.38 per dollar on demand for the US currency from banks and importers.
The rupee resumed lower at 62.35 per dollar as against the last weekend's level of 62.16 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 62.46.
However, it recovered afterwards to 62.32 per dollar before quoting at 62.38 per dollar at 1045 hrs.
It moved in a range of 62.32 and 62.46 per dollar during the morning deals.
In New York, the US dollar jumped to a one-month high against the euro last Friday.
The benchmark BSE Sensex declined by 32.70 points, or 0.16 %, to 20,818.63 at 10.45 am.