The Indian rupee shed early gains to close marginally weaker on Wednesday due to strong dollar demand from oil companies and some foreign fund outflows.
Taking a cue from the strength of major currencies against the US unit, the rupee had opened higher, but all-round demand for the dollar pulled down the Indian currency, said dealers.
The rupee closed at 44.9350/9450 per dollar on Wednesday, down from Tuesday's close of 44.925/940. "There was pretty good demand for dollars in the market from corporates but I think it is a one-off event," said a dealer with a foreign bank.