Mumbai: The rupee reversed most early gains in afternoon trade on Wednesday, dragged by choppy domestic equities and dollar buying by some custodian banks for their customers.
Selling pressure on rupee also intensified after domestic oil companies stepped up demand for dollars, traders said.
Oil is India’s biggest import and local refiners are the largest purchasers of dollars in the domestic foreign exchange market.
At 2:48 pm, the rupee was at 49.39/40 per dollar after rising as high as 49.10 in early trade. The unit had closed at 49.40/41 on Tuesday.
The benchmark shares index was trading down 0.3% after rising as much as 1.1%.