The rupee had ended six paise lower at 53.22 against the dollar in the previous session.
Mumbai: The rupee continued to slide against US dollar this morning, down 29 paise at 53.51 on persistent demand for the American currency from banks and exporters as it gained in the overseas forex markets as well.
The dollar gained despite capital inflows into the Indian equity market.
The rupee resumed lower at 53.44 a dollar as against the last closing of 53.22 at the Interbank Foreign Exchange (Forex) Market. It dropped further to a low of 53.58, before quoting at 53.51 per USD at 1040 hrs.
The rupee moved in the 53.42 and 53.58 per dollar range during the morning deals.
Persistent dollar demand from banks and exporters against the backdrop of its firm value overseas affected the rupee, a forex dealer said.
In New York, the euro weakened against the dollar and other currencies.
Meanwhile, the BSE 30-share index, Sensex, rose 47 points or 0.24 percent quoting 19,627.73 at 1050 hours.