The rupee pared initial losses and was trading strong by 6 paise on mild dollar selling by banks and importers.
According to forex dealers, dollar's strength against other currencies overseas capped the rupee's gains.
The Indian currency opened lower by 11 paise at 68.49 against Wednesday’s level of 68.38 per dollar at the Interbank Foreign Exchange (Forex) market today.
It hovered in a range of 68.51 to 68.31 per dollar during the morning deals, before quoting at 68.32 at 4.45 pm local time.
Overseas, the US dollar was broadly firm in Asian trade, hitting 9 1/2-month high against the yen as oil prices surged after OPEC agreed for output cuts — lifting inflation expectations and US bond yields.
The dollar’s rebound came as oil prices jumped around 9 per cent yesterday as OPEC members agreed to cut production for the first time since 2008.
Meanwhile, the benchmark BSE index closed 92.89 points or 0.35 per cent lower at 26,559.92.