Mumbai: The rupee fell from initial gains to trade lower by 8 paise at 66.52 against the American currency in late morning deals on bouts of dollar demand from importers and banks.
The domestic currency resumed higher at 66.40 as against yesterday's level of 66.44 per dollar at the Interbank Foreign Exchange (Forex) market here. It gained further to 66.39, but later plunged to quote 66.52 at 1030hrs.
The rupee hovered in a range of 66.58 to 66.39 per dollar during the morning deals.
The dollar index was up 0.01 per cent at 94.02 as against a basket of six global currencies in Asian trade.
Overseas, the US dollar was lower against its major rivals and mostly remained defensive after carving out a fresh low on the break of a technical barrier overnight as momentum sellers joined in the fray.
Meanwhile, the benchmark BSE Sensex was trading higher by 122.90 points or 0.49 per cent at 25,145.06 at 1100 hrs.