Rupee trades weaker at 54.49/50 compared with its close of 54.37/38 on Tuesday. Risk-off mood continues in global markets.
Asian shares extend losses and investors give the euro a wide berth after a bailout deal for Cyprus is thrown into disarray.
The RBI's guidance on the scope for future rate cuts being limited and the ongoing political uncertainty after a key ally withdraws support from the ruling coalition are expected to keep the downside for the pair under check.
The pair is seen moving in a 54.10 to 54.60 range during the session. Traders expect some selling to come in around 54.55-60 levels, preventing a much sharper rise.