Rupee is seesawing in trade, currently at 53.08/09 versus its previous close of 53.0450/0550 versus the dollar. The pair has so far moved in a range of 52.99 to 53.16.
Further gains in dollar are being capped by exporter dollar sales, while losses are being limited due to possible demand on the back of weak local shares.
The Sensex is trading down 0.1 percent on caution ahead of corporate earnings.
The euro down as uncertainty over Spain's bailout prospects continued to spook sentiment, which is also dented by a drop in share markets due to worries about slowing global growth.