Rupee keeps gains, hovering near its near two-week high of 53.14 hit earlier in the session, now trading at 53.05/06 vs its previous close of 52.72/73.
Oil-related dollar purchases and weakness in local stocks also contributing to the rupee weakness, dealers said.
India's main stock index ended down 0.86 percent.
Standard & Poor's warns of a "significant chance" that political, economic, fiscal or external factors could eventually lower the credit rating on India downgrade.
