Mumbai, Dec 1: The rupee pared initial losses, but was still quoting lower by 2 paise in late morning trade to 68.40 against the American currency on demand from banks and importers amid higher dollar overseas. The Indian currency opened lower by 10 paise at 68.48 as against Wednesday’s level of 68.38 per dollar at the Inter-bank Foreign Exchange (Forex) market. It hovered in the range of 68.52 to 68.38 per dollar during the morning deals, before quoting at 68.40 at 1015 hrs.

The dollar index were trading down 0.07 per cent at 101.46 against a basket of six currencies. Overseas, the US dollar was broadly firm at Asian trade, hitting 9 1/2-month highs against the yen as oil prices surged after OPEC agreed to output cuts – lifting inflation expectations and US bond yields.

The dollar’s rebound came as oil prices jumped around 9 per cent yesterday as OPEC members agreed to cut production for the first time since 2008. Meanwhile, the benchmark BSE Sensex were trading up by 31.04 points or 0.12 per cent at 26,683.85 at 1025 hrs.