The rupee erases its initial gains and was trading weak by 15 paise at 67.78 in the evening session on heavy dollar demand from importers amid a flat close at the domestic equity market.
Earlier, the domestic unit opened strong by 10 paise at 67.53 against the previous close of 67.63 at the Interbank Foreign Exchange on increased selling of the US currency by banks and exporters.
Later, it weakened to 67.83 before being quoted at 67.78 at 4.30 pm local time. The local currency hovered in a range of 67.83 and 67.53 in the evening trade.
In the overseas market, the dollar edged down on Monday but remained well off recent lows as markets started the week on a calmer note and investors turned their attention to upcoming central bank meetings.
The dollar inched down slightly against its Japanese counterpart to 118.75, but remained not far from a two-week high of 118.88 touched on Friday, just a day after it dropped to a one-year low of 115.97.
Meanwhile, the benchmark BSE Sensex ended higher by 50.29 points or 0.21 per cent at 24,485.95.