MUMBAI: The rupee reduced some of its initial losses on 24 August but was still down 14 paise at 55.40 against the dollar on demand for the American currency from banks and importers.

Besides increased dollar demand from importers, a lower opening in the domestic equity market put pressure on the rupee, forex dealers said.

The rupee resumed lower at 55.35 a dollar as against the last close of 55.26 at the Interbank Foreign Exchange (Forex) Market and moved between 55.34 and 55.45, before quoting at 55.40 a dollar at 1040 hrs.

Meanwhile, the BSE benchmark Sensex fell by 88.71 points, or 0.49 percent, to 17,761.51.

They, however, added that euro's rise against the dollar in the overseas markets capped rupee's losses.

Besides fresh dollar demand from banks and importers, the American currency was also quoting stronger against other currencies in the overseas markets and that too impacted the rupee value against it, a forex dealer said.

Meanwhile, the BSE 30-stock index, Sensex, was down 70 points or 0.39 percent at 1040 hrs.