The Indian rupee resumed lower at 54.67 per dollar as against the last closing level of 54.55 at the Interbank Foreign Exchange Market.
It dropped further to a low of 54.83 before quoting 54.75 per dollar at 1050 hrs. Fresh dollar demand from banks and importers mainly affected rupee value against the dollar, a forex dealer said.
In New York market, the US dollar pared losses on Wednesday amid reports that cut into optimism that Washington lawmakers are close to a deal to avoid going over the fiscal cliff.
The euro hit levels against the dollar last seen in April and notched a 17-month high against Japanese yen after a closely watched gauge of German business confidence rose more than expected in December.