The rupee recovered 21 paise from intra-day low of 69.03 to trade at 68.82 against the US dollar in late morning deals.
As the US is set to impose tariffs on Chinese goods on Friday and sustained foreign capital outflows pressured the sentiment, the rupee fell sharply to 69.03 a dollar before quoting 68.82 at 1145 hrs.
The rupee moved in range between 68.82 and 69.03 during morning trade.
Overseas, major currencies traded lower in early Asian trade as investors remained cautious ahead of the US tariffs imposition on Chinese goods.
The 30-share BSE Sensex trading higher by 123.82 points or 0.35 per cent at 35,698.37 at 1150 hrs.