However, it recovered afterwards to 62.62 per dollar on mild selling of the US currency by banks before quoting at 62.67 per dollar at 1040hrs.
It moved in a range of 62.62-62.90 per dollar during the morning deals.
In the global market, the US dollar edged up in the early trade, but gains against major rivals appeared limited due to the prospects of extended monetary stimulus by the Federal Reserve.
The ICE dollar index which measures the greenback against a basket of six rival currencies, rose to 80.475 from 80.452 late Monday in North America.
Meanwhile, the Indian benchmark sensex gained 8.88 points and was at 19,909.84 at noon.