The rupee failed to maintain initial gains against the American currency and was quoted steady at 55.72 per dollar in the late morning trade on renewed dollar demand from banks and importers.
The rupee resumed higher at 55.60 per dollar as against the on Monday's closing level of 55.73 per dollar at the Interbank Foreign Exchange (Forex) Market on selling of dollars by some banks on sustained foreign capital inflows into equity market.
However, it failed to maintain initial gains and was quoted at 55.72 per dollar at 1040 hrs on fresh month-end dollar demand from importers, mainly oil refiners.
It moved in a range of 55.58 per dollar and 55.73 per dollar during the morning deals.
In the Sydney market, the dollar declined in the early trade as euro zone finance ministers, the European Central Bank and the International Monetary Fund agreed on a plan to cut the Greece's government debt to 124% of gross domestic product by 2020 and to less than 110% of GDP by 2022, paving the way for the country to receive its next tranche of financial aid.
Meanwhile, the Sensex rose sharply by 236 points of 1.28% to 18,773.38 at 1100 hrs.