After slumping to a new record low of 61.19 against the dollar in early trade, the rupee on Monday recovered a bit to 61.04 in late morning deals on suspected intervention by the Reserve Bank.
The local currency commenced the day's trade at an all-time low level of 61.19 against the dollar at the Interbank Foreign Exchange market and hovered in a range of 61.19 and 60.80. It was trading at 61.04 at 1040 hours, down 82 paise, or 1.36%, from Friday's closing level.
Forex dealers said there was some dollar selling by public sector banks on the behest of RBI.
Persistent dollar demand from banks and importers triggered by strong US currency in the overseas market mainly weighed on the rupee, amid sharp fall in local equities, they added.
In New York market, a key gauge of the US dollar's value rose in the early trade holding its grip on a three-year high amid heightened expectations that the US Federal Reserve will slow the pace of monetary stimulus later this year.
Meanwhile, the BSE benchmark index Sensex was trading down by 271 points, or 1.39%, to 19,224.90 at 1045 hours.