The Indian rupee fell by 10 paisa at 48.23 against the US dollar in morning trade today on month-end dollar demand.
The domestic currency resumed modestly higher at 48.10/12 a dollar against its previous close of 48.13/14 a dollar but later dropped to a low of 48.23.
Dealers at the Interbank Foreign Exchange (forex) market said the rupee came under pressure as oil refiners made some dollar purchases for their monthly import payments.
Weak dollar overseas and a fresh surge in local stocks failed to have any positive impact on rupee sentiment.
Meanwhile, global oil prices improved to $ 70 a barrel in Asian trade this morning.
Indian benchmark Sensex was up 129 points at 1030 hrs while Asian markets exhibited a mixed trend in early trade.