The rupee pared morning losses and was trading higher to 68 against the American currency in late morning deals amid bouts of dollar-selling by banks and exporters, despite strength in the greenback.
The rupee hit a fresh three-week low of 68.16 against last Friday's closing level of 68.01 at the inter-bank foreign exchange here.
The domestic unit was trading in a wide range and hovered between 67.97 and 68.18 per dollar during morning deals, it was quoting at 68.00 at 1030 hrs.
Some dollar-selling by banks on behalf of the apex bank curbed the fall in rupee, a dealer said.
Meanwhile, the US dollar rose towards a seven-month high against its major peers in early Asian trade as investors hoped the United States and China would avoid a full-blown trade war, although tensions between the two slowed its gains.
The 30-share BSE Sensex trading marginally lower by 29 points, or 0.08 per cent, at 35,592.54 at 1045 hrs.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)