The rupee traded a shade lower at 65.15 against the dollar due to mild demand for the greenback from importers and banks despite the latter's weakness overseas.
The US Fed minutes signalled rate hike eventuality despite low inflation levels.
The rupee resumed marginally higher at 65.13 as against yesterday's closing level of 65.14. It later slipped to 65.15 at 1020 hours.
"Higher local equities is restricting the rupee volatility," a forex trader said.
Meanwhile, FPIs withdrew Rs 107.95 crore on a net basis from stock markets yesterday, as per provisional data.
Overseas, the US dollar hit a two-week low versus a basket of currencies in early Asian trade after the minutes from suggested that some central bankers are still concerned about persistently low inflation.
The BSE Sensex rose 112.62 points, or 0.35 per cent, at 31,946.61.