The rupee was trading weak by 7 paise at 66.91 against the dollar due to foreign exhange outflows despite dollar's weakness against other currencies overseas.
Forex dealers said the dollar was weak against other currencies overseas, as falling oil prices renewed low inflation concerns ahead of the Federal Reserve’s interest rate decision next week.
Currencies of major commodity producers such as Australia and Canada steadied on Wednesday, letting them nurse big losses suffered in the past two days from a selloff in oil and bulk commodities.
The domestic unit opened a tad strong at 66.83 against the dollar on fresh selling of the American currency by exporters and banks.
It hovered in a range of 66.92 and 66.72, before being quoted at 66.91 at 4.30 pm local time.
The rupee had plunged to close at its fresh two-year low of 66.84 against the dollar by falling 11 paise in yesterday’s trade on consistent demand for the American currency from banks and importers.
Meanwhile, the benchmark BSE Sensex ended lower by 274.28 points or 1.08 per cent at 25,036.05.