The Indian rupee weakened by 11 paise to 51.65/66 after opening strong against the US currency in late morning trade in tune with fall in stock markets despite the apex bank cutting key rates to spur economic growth.
In active trade at the Interbank Foreign Exchange (Forex) market, the local unit resumed better at 51.45/50 a dollar from last close of 51.54/55. It moved in a range of 51.46 to 51.73 before being quoted at 51.65/66 in late morning deals.
Yesterday, the rupee snapped seven-session of losing string, in which its was tumbled by a whopping 235 paise, or 4.74 per cent, and was recovered by 43 paise.
The Reserve Bank late last evening cut repo and the reverse repo rates by 50 basis points each with immediate effect to support the faltering economy.
Forex dealers attributed initial moderate rally in the rupee to firm opening in domestic equity markets.
Sustained capital outflows, which stood over USD 2 billion in 2009 so far, and firming dollar overseas against its major rivals also put pressure on the rupee.
Meanwhile, the global oil prices were trading near USD 45 a barrel in Asian trade today.
