The rupee edged 2 paise higher to 64.91 against the American currency in late morning deals on bouts of dollar-selling from banks and exporters.
The rupee opened lower at 64.98 against the dollar after yesterday's close of 64.93 at the inter-bank foreign exchange here.
The domestic unit swung between gains and losses and hovered between 64.88 and 64.98 in morning deals. It was trading at 64.91 at 1030 hrs.
'The dollar gains overseas influenced rupee volatility. However, weakness in dollar on possible trade tensions dominated the rupee momentum," a dealer said.
Meanwhile, the US dollar held gains against a basket of peers in its early Asian trade, as recent concerns about the currency arising from trade tensions eased slightly and next week's Federal Reserve policy meeting came into focus.
The 30-share BSE Sensex trading lower by 187.27 points, or 0.56 per cent, at 33,501.25.
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