The rupee was trading weak at 66.58 on increased dollar demand from banks and importers amid a weak equity market.
The rupee opened weak by 21 paise at 66.63 against the previous close of 66.42 at the Interbank Foreign Exchange market today.
It hovered in a range of 66.65 and 66.49 before quoting at 66.58, down 16 paise at 4.40 pm local time.
According to forex dealers, a firm dollar against other currencies overseas, as global growth worries swept equity markets and pushed down oil prices, boosting demand for the American currency, weighed on the rupee sentiment.
The yen slipped from an 18-month high against the dollar on Wednesday, losing some steam as position squaring set in after its sharp rally since last week.
The dollar rose 0.6 per cent to 107.22 yen, pulling away from Tuesday's low of 105.55 yen, the dollar's weakest level since October 2014.
Indian shares fell for a third straight session on Wednesday on disappointment over quarterly earnings, including that of Adani Ports which slumped nearly 12 per cent, while regional markets languished due to global growth and deflation worries.
The benchmark BSE Sensex ended down by 127.97 points or 0.51 per cent at 25,101.73.