The Indian rupee trimmed its early losses against the American currency but was still quoted down by 23 paise to 62.74 per dollar on month-end dollar demand from importers amidst fall in the equity market.
Foreign capital outflows also affected the rupee value, a forex dealer said.
The rupee resumed lower at 63.00 per dollar as against the last weekend's level of 62.51 per dollar at the Interbank Foreign Exchange (Forex) Market on sustained dollar demand from importers, mainly oil refiners.
However, it recovered afterwards to 62.60 per dollar on mild selling of dollars by banks before quoting at 62.74 per dollar at 1045hrs.
Crude oil prices tumbled in Asian trade today as a budget impasse in the United States threatened to shut down parts of the economy, analysts said. New York's main contract, West Texas Intermediate for delivery in November fell USD 1.16 to USD 101.71 in mid-morning trade.
Meanwhile, the Indian benchmark sensex dropped by 203 points or 1.03 per cent to 19,524.11 at 1050hrs.