The rupee slipped further by 14 paise to 67.88 against the US currency in late morning deals following bouts of month-end dollar demand from banks and importers amid continued capital outflows.
Earlier, the Indian rupee opened lower by 10 paise at 67.84 as against Monday's closing of 67.74 at the Interbank Foreign Exchange (Forex) Market.
The domestic unit hovered between 67.88 and 67.8150 per dollar during morning deals before quoting at 66.88 per dollar at 1025 hrs.