The rupee came off its days highs, to turn lower in afternoon trade on Wednesday, tailing euro, with oil buying and choppy domestic shares adding to the pressure.
At 03:00 P.M., the rupee was at 50.77/50.78 to the dollar, after giving up its gains from the morning session. It had touched 50.50 to the dollar earlier in the day -- a level last seen on Nov 15. It closed up 1.24% on Tuesday at 50.73/74.
The euro trimmed gains on Wednesday after a warning from a ratings agency of more downgrades to Italy underlined the extent to which weak euro zone countries are suffering from the region's debt crisis, which could knock the currency lower.
Recent measures by the government to raise the ceiling on foreign investment in debt, deregulation of interest rates on deposits by non-resident Indians, coupled with a government decision to raise the import duty on gold and silver was providing some support to the currency, traders said.