The rupee resumed steady at Rs 46.15/16 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 46.16/17 per dollar, but declined immediately to a nearly one-year low of Rs 46.30 per dollar before quoting at Rs 46.20/21 per dollar at 1030 hours.
The domestic currency moved in a range between Rs 46.15 and Rs 46.30 per dollar during morning deals.
Persistent dollar demand from banks and importers on the back of dollar firmness in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.
The dollar edged higher against the euro in early trade in the Sydney market today ahead of a meeting of the European Central Bank, which is expected to signal an end to its brief rate hike cycle. Meanwhile, the Indian benchmark Sensex was up by 24 points, or 0.14 per cent, in early trade today.