The rupee pared its early losses against the dollar to trade at 65.02, still down by 8 paise, in late morning session at interbank foreign exchange market.
The rupee opened lower at 65.11 against previous close of 64.94 on strong demand for the greenback and early losses in stock markets.
The rupee recovered some ground against the dollar later to trade at 65.02, down by 8 paise at 1130 hrs.
The domestic currency moved between 65.11 and 65.0150 in morning trade.
The dollar fell marginally against world currencies amid uncertainty over US tax reforms.