The rupee erased its initial gains and was trading weak by 6 paise at 61.52 against the dollar at 2.55 p.m. local time due to mild dollar demand from banks and importers.
The domestic unit hovered in a range of 61.39 and 61.53 against the dollar.
The rupee opened a tad stronger at 61.43 per dollar against Friday's close of 61.46 ahead of Reserve Bank of India (RBI) monetary policy review tomorrow and a weak US currency overseas.
The domestic unit had strengthened last week on dollar sales by banks, coupled with persistent foreign capital inflows into the equity market.
Dealers expect the rupee movement to be muted ahead of the key events. The RBI policy meeting is scheduled tomorrow, while the US Federal Open Market Committee (FOMC) will meet on October 29-30.
In New York, the dollar struggled for direction last Friday, attempting to rebound from a nearly two-year low versus the euro, as end-of-week position-squaring competed with lacklustre economic data, including a steeper-than-expected fall in consumer sentiment.
