The rupee was trading weak at 68.13 against the dollar in the evening session due to increased demand for the American unit from importers and banks and sustained capital outflows from the domestic equity market.
According to forex dealers, dollar's weakness against other currencies overseas limited the rupee's fall.
Earlier, the domestic unit broke below the 68-mark by depreciating 22 paise to 68.20 at the Interbank Foreign Exchange market. It further weakened to 68.26, before being quoted at 68.13, down 15 paise at 4.20 pm local time.
The rupee had lost 14 paise to close at 67.98 per dollar in yesterday’s trade on sustained demand for the US currency from banks and importers amid a massive fall in equities as the Reserve Bank kept its key policy rate unchanged.
The dollar was trading steady at 120 yen, below a six-week high of 121.70 yen hit on Friday after the Bank of Japan surprised the markets by cutting one of its main interest rates below zero.
Meanwhile, the benchmark BSE Sensex tumbled by 315.68 points or 1.29 per cent to 24,223.32.