The rupee slipped from its initial recovery, dropping 7 paise to Rs 68.23 in late morning deals following bouts of dollar demand from importers despite higher domestic equities.
Later, it hovered in the range of 68.24 to 68.09 per dollar during the morning deals, it was quoting 68.23 at 1030 hrs.
The dollar Index is trading down by 0.01 percent at 100.87 against a basket of six currencies.
Overseas, the US dollar took a breather against basket currencies in early Asian trade, as investors consolidated the gains built on expectations of increased fiscal spending and higher inflation under a Trump administration.
Meanwhile, the benchmark BSE Sensex was trading higher by 83.75 points or 0.33 per cent at 25,848.89 at 1050 hrs.