The Indian rupee opened weak by 6 paise at 70.90 versus previous session's close of 70.84. Last, the rupee was seen trading at 70.93.
On Tuesday, rupee surged to a one-month high of 70.68 per US dollar on the back of strong gains in equity markets as well as lower crude oil prices. Lower oil prices bode well for the Indian rupee as it helps reduce current account deficit of the country.
So, far in the month of October, FPIs have bought in equity worth $500 million while the investment in debt has remained steady. In G-securities, FPIs have invested up to 72% of their limit while in case of corporate bonds they have invested to the extent of 63% of their available limit.
The dollar traded in a narrow range on expectations of a rate cut by the US Federal Reserve later in the day today.
The yield on 10-year benchmark bonds stood at 6.51%.
Meanwhile, reports of tax alignment on equities strengthened the Indian equities which opened with huge gains, with Sensex in opening trade surging by 0.6% to 40,044 and the NSE Nifty 50 rose 0.5 percent to 11,839.