Monday, August 14 2006 15:42 Hrs (IST) - World Time -

Mumbai: The rupee weakened further against the US currency in early trade, today (Aug 14,2006) falling by about four paise in later morning dealings weighed down by the dollar's rebound in overseas markets.

In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit opened lower at Rs 46.56/58 per dollar from Friday's close of Rs 46.5150/5250 per dollar and later was quoted fractionally changed at Rs 46.55/56 in late morning dealings on the back of buyant trend in equity markets.

Dealers cited dollar's rally against its major rivals in international markets as the only reason for rupee's weakness.

The activity was dull but the rupee fell further due mainly to dollar's recovery overseas, forex dealers said.

In overseas markets, the dollar rallied across the board, rising to two-week highs againsg the euro and near three-week highs against the yen after July U.S. retail sales were reported far higher than the market had anticipated.

Meanwhile, easing crude oil prices reduced pressure on the rupee while Foreign Institutional Investors reported increased inflows in the equity markets.