The rupee was pulled off a two-week high touched in early trades on Tuesday due to strong dollar demand from oil refiners, the biggest purchasers of the greenback in local currency markets.
Some companies bought dollars to repay maturing foreign currency convertible bonds, which also weighed on the rupee, traders said.
At 2:38 p.m. (0908 GMT), the rupee was at 49.19/20 to the dollar, after touching 49.05, its highest since February 8, according to Thomson Reuters data. It had ended at 49.27/28 on Friday.
Improved global risk appetite after Greece secured the second tranche of bailout funds pushed equities higher and helped limit selling pressure on the rupee, traders said.
After 13 hours of talks, euro zone ministers finalised measures to cut Greece’s debt to 120.5 percent of gross domestic product by 2020, securing its second rescue in less than two years and allowing it to meet a bond repayment due next month.