The rupee weakened by 2 paise to 66.24 against the US currency in late morning deals on fresh bouts of dollar demand from banks and importers.
The rupee opened lower at 66.32 per dollar against yesterday's closing level of 66.22 at the Interbank Foreign Exchange (Forex) market.
Later, bouts of dollar selling from exporters led the domestic unit to recover to 66.14, before it slipped back to quote 66.24 at 1045 hrs.
It moved in a range of 66.32 and 66.14 during the morning trade.
Globally, the US dollar slumped against against its major rivals late yesterday trade, after a weak reading on Chinese manufacturing activity reignited investors' fears about a sharp slowdown in the world's second-largest economy.
Meanwhile, the benchmark BSE Sensex was trading up by 10.94 points or 0.04 per cent at 25,707.38 in morning trade.
