Mumbai: Rupee slipped from initial gains and was trading down by 11 paise at 66.57 against the US currency in late morning trade on bouts of dollar demand from banks and importers.
The rupee resumed marginally higher by 4 paise at 66.42 as against yesterday's level of 66.46 per dollar at the Interbank Foreign Exchange (Forex) market.
It hovered in a range of 66.37 to 66.5750 during the morning deals before quoting 66.57 at 1030 hrs.
The dollar index was up 0.05 percent at 94.66 as against a basket of six currencies in the early trade.
In Asian trade, the dollar hovered near a 17-month low against yen after taking a fresh knock overnight on comments by Japan's prime minister which suggested the authorities were cautious towards arresting the yen's appreciation.
Oil prices jumped in early trade, supported by growing expectations that exporters will agree to freeze their output amid global oversupply, although Iran's plans to boost production are seen as capping bigger gains.
Meanwhile, the benchmark BSE Sensex was trading up 14.83 points or 0.06 percent at 24,898.42 at 1030 hrs.