At the interbank foreign exchange, the rupee witnessed high volatility.
This is the fifth straight session of loss for the domestic currency, during which it has lost a hefty 210 paise.
The rupee opened weak at 68.89 at the interbank forex market and slipped further to 68.94, showing a decline of 9 paise.
Forex traders said strengthening of the greenback against Asian currencies weighed on the domestic unit.
Market participants are looking forward to the US and China trade talks, which can impact rupee movement.
Rupee gained 15 paise following a recovery in the domestic equity market.
Forex traders said heavy buying in domestic equity market supported the rupee.
Rupee closed at 68.94 against the American currency, down 2 paise over its previous close.
Forex traders said rupee along with most Asian currencies strengthened following dovish comments from New York Fed officials.
Traders said foreign fund outflows and cautious opening in domestic equities weighed on the local unit.