The Indian rupee failed to maintain initial gains on fresh dollar demand from banks and importers.
At the Interbank Foreign Exchange (Forex) market, the domestic currency opened higher at 46.53/54 a dollar, but declined immediately to 46.72.
It was quoting at 46.68/69 per dollar at 1030 hours.
The rupee had closed at 46.58/59 per dollar yesterday.
The rupee had resumed higher on dollar selling by banks on the back of overnight fall in New York market after data showed U.S. jobless claims rose and pending home sales plunged.