Mumbai: The Indian rupee recovered from initial losses against the American currency, but was still quoted lower by five paise to 54.53 per dollar on mild dollar demand from banks and importers.
The rupee resumed higher at 54.41 per dollar as against the last weekend's level of 54.48 per dollar at the Interbank Foreign Exchange (Forex) Market on selling of dollars from banks in view of persistent foreign capital inflows into equity market.
However, it failed to maintain initial gains and dropped to a low of 54.58 per dollar on good dollar demand from banks before quoting at 54.53 per dollar at 1040 hrs.
It moved in a range of 54.40 per dollar and 54.58 per dollar during the morning trade.
Meanwhile, the Indian benchmark Sensex eased by 12.90 points or 0.07 pct to 19,304.35 at 1100 hrs.
Crude oil was up in Asia Monday on trader expectations of a hike in Chinese crude demand after a key survey showed its manufacturing activity hitting a 14-month high in December, analysts said.
New York's main contract, light sweet crude for delivery in January rose 23 cents to USD 86.98 a barrel.