At 12.55 p.m. local time, the rupee was trading lower at 55.16 against the dollar.
The rupee opened slightly higher at 55.08 against the dollar but the gains were capped because of uncertainty in the markets over key legislations making their cut in Parliament.
About 25 large and small bills are proposed to be introduced in Parliament in a month-long session beginning today.
Also, uncertainty in Europe over a bailout package for Greece has kept the rupee below the 55 levels for the past few days.
The domestic unit had closed at 55.11 against the dollar. Month-end oil-related dollar buying will also add pressure on the Indian unit over the next week.
