The rupee surrendered its initial gains and fell 39 paise to 67.68 against the US dollar in late afternoon deals on bouts of dollar demand from importers.
The domestic unit resumed higher at 67.32 per dollar as against yesterday's closing level of 67.29 at the Interbank Foreign Exchange (Forex) market.
It hovered in a range of 67.70 and 67.25 during intra-day deals before quoting at 67.68 per dollar at about 4 pm.