The Indian rupee weakened on Monday from a three-week closing high struck the previous session on corporate demand amid concerns over the fate of key reforms unveiled by the new government in its maiden budget last week.
The rupee ended at 45.6850/6950 per dollar, down 0.07 percent from Friday's close of 45.6550/6600.
It weakened in late trading on unexpected demand from some diamond companies, which followed dollar purchases by oil firms.
"There are lingering concerns over the fate of the budget's proposal to boost foreign direct investments in insurance and telecommunications sectors," said a trader at a state-run bank.
"That kept the rupee quite subdued for most of the day and corporate demand towards the end took it down a bit."
The new govt have objected to proposals to hike foreign direct investment caps in the insurance and telecom sectors.
Those proposals, along with some others in Thursday's budget for the fiscal year to March, had buoyed the rupee on Friday.
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