The dollar's strength against other currencies overseas limited the rupee's gain.
The volatility in rupee continued as it trimmed initial gains, but was still quoting higher by 3 paise at 68.44 against the American currency in late morning deals on sustained selling of dollar from banks and exporters amid higher equities.
The domestic unit resumed higher at 68.39 per dollar as against Wednesday's closing of 68.47 per dollar at the Interbank Foreign Exchange market.
Later, it gained further to 68.32 on bouts of dollar selling from banks before quoting at 68.44 at 1030 hours.
The domestic unit hovered in a range of 68.45 and 68.32 per dollar during morning deals.
Meanwhile, the dollar index was down by 0.12 per cent at 96.74 against a basket of six currencies in the Asian trade.
Overseas, the US dollar were mixed against its major rivals in early Asian trade, While, commodity currencies gained from having benefited hugely from a jump in oil prices, while an absence of fresh cues in minutes of the Federal Reserve January meeting saw the greenback shuffle sideways.
