On Thursday, the rupee had gained 3 paise to end at 67.62 against the US currency.
The Indian rupee on Friday ended lower at 68.01 against the US dollar.
However, the pound sterling finished lower at Rs 90.30/32 at the close of the Interbank Foreign Exchange (forex) market today.
In early trade today, the Indian rupee plunged by 36 paise to hit a three-week low of 67.98 against the US dollar following strong demand for the greenback amid sustained foreign capital outflows.
Losses for the rupee came a day after the dollar strengthened against a group of currencies, after the European Central Bank signalled interest rate hikes were a long way off.