The rupee dropped 15 paise to 52.70 against the US dollar in late morning trade on month-end demand for the American currency from importers.
The rupee fell despite weak dollar in the overseas market.
The domestic unit resumed higher at 52.47/48 per dollar at the Interbank Foreign Exchange (Forex) market against the last closing level of 52.55/56 per dollar but declined immediately to 52.70 per dollar before quoting at 52.61/62 per dollar at 10.30 am.
The rupee moved between 52.49 and 52.70 per dollar during the morning deals.
Month-end dollar demand from oil refiners affected the rupee value against the dollar, a forex dealer said.
In the New York market, the dollar fell against the Japanese yen yesterday. It also slipped against the euro.