The Russian rouble weakened 2.70% versus the greenback at 81.13 after reaching 81.392 per dollar, giving back gains made on Tuesday.
The U.S. dollar, edged 0.2% lower at 95.938 against a basket of currencies including the euro, as investors await further developments in the crisis
Forex traders said sustained foreign fund outflows, a lacklustre trend in domestic equities and elevated crude oil prices weighed on investor sentiment.
Euro, which was up 0.6% at one stage during early London trading, slowly abandoned those gains and was up a meagre 0.1% at $1.1336
In broad terms, moves in currencies aligned with moves in risk sentiment across asset classes.
Forex traders said sustained foreign fund outflows and elevated crude oil prices too weakened the rupee.
Strategists said the minutes suggested policymakers may not be as hawkish as investors feared.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent higher at 96.04.
Forex traders said sustained foreign fund outflows and elevated crude oil prices too weakened the rupee position.
Forex traders said muted domestic equities and elevated crude oil prices weighed on the local unit.
Forex traders said muted domestic equities, sustained foreign fund outflows and elevated crude oil prices weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 74.70 against the American dollar, and later witnessed an intra-day high of 74.68 and a low of 74.87 against the greenback
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 95.53.
However, the surge in the rupee was restricted amid elevated crude oil prices and muted domestic equities.
The risk-sensitive Australian and New Zealand dollars fell slightly in morning trade
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent lower at 96.59.
Fed Chair Jerome Powell said the U.S. central bank will be open-minded as it adjusts monetary policy to keep persistently high inflation from becoming entrenched
Meanwhile, cryptocurrencies traded weaker, but were well off the lows tested at the start of the week
Forex traders said the Indian rupee is trading in a narrow range ahead of the US Federal Reserve meeting later this week.
The rupee snapped its 3-day losing streak to settle 14 paise higher at 74.44 (provisional) against the US dollar on Wednesday