The rupee trimmed losses to trade 55.31/32 retreating after hitting a more than two-month low of 55.37 earlier in the session.
The pair closed at 55.0950/1050 on Tuesday. Traders say gains in domestic shares have led to some dollar selling by custodian banks, although that's being offset by greenback buying from oil refiners.
Shares are trading up 0.4 per cent. The rupee weakness also aided by the euro's losses versus the dollar after Greece's international lenders failed to agree on a deal to support the indebted country, and plan to resume talks on Monday.
