The rupee was trading at 62.23/24 after hitting a one-week high of 62.15 earlier in the session and weaker than its close of 62.50/51 on Tuesday.
The euro hit its highest in four years against the yen and rose versus the dollar after German Chancellor Angela Merkel's conservatives reached a deal with the Social Democrats on forming a grand coalition.
Traders said good dollar selling is being seen from foreign banks though dollar demand from oil firms helped limit a further sharp fall in the dollar-rupee pair.
