The rupee erased some of its initial losses of this morning but was still trading down five paise at 55.67 against the American currency on dollar demand from banks.

The weakness in rupee was in line with stronger dollar in the overseas forex markets, and despite good capital inflows into the Indian equity market.

The rupee resumed lower at 55.72 a dollar as against yesterday's close of 55.62 at the Interbank Foreign Exchange (Forex) Market and moved between 55.60 and 55.74, before quoting at 55.67 per dollar at 1040 hrs.

In the New York market, the dollar gained against the euro yesterday.

Meanwhile, the BSE 30-stock index, Sensex, was down 75.98 points or 0.43% from its last close.