The rupee inched a tad lower at 68.55 from Tuesday closing level of Rs 68.54 at the interbank foreign exchange market here.
It slipped further to 68.60 before recovering to trade higher at 68.48. The domestic unit was trading stable at its overnight level of 68.54 at 1030 hrs.
The Indian unit hovered between 68.48 and 68.60 during morning deals.
The central bank is expected to maintain its neutral policy stance given the volatility in crude oil and food prices as well as inflationary concerns, a dealer said.
Overseas, the US dollar rose against its major peers in early Asian trade, while edging up on the yuan after a source said the White House was about to propose higher tariffs on USD 200 billion in Chinese imports, perhaps sparking a new round of trade hostilities.