Traders said impact of Moody's rating downgrade of Japanese government debt was negligible.

At 10:25 a.m. (0455 GMT), the partially convertible rupee was at 45.74/75 per dollar, weaker than its 45.625/635 close on Tuesday, having moved in a 45.71-45.81 band so far in the day.

"Don't expect too much from the market. Let's see how the oil (dollar) demand emerges," said a senior foreign exchange dealer at a private bank.

Oil is India's biggest import item and local oil companies are the largest purchasers of dollar in the domestic market.

The rupee and is broadly expected to stay in a 45.60-45.85 range in the day, traders said.

Moody's downgraded Japan by one notch to Aa3, blaming large budget deficits and a buildup of debt since the 2009 global recession.

The euro was at $1.4406 from $1.4484 at the end of local forex trade on Tuesday, while the index of the dollar against six major currencies was at 73.951 points from 73.613 points previously.

For a snapshot of Asian currencies, see

At 0455 GMT, India's benchmark share index was marginally up 0.1 percent in choppy trade weighed by concerns over the health of the global economy.

The one-month onshore forward premium was at 12 points from 12.75 points on Tuesday, the three-month was at 44 points from 43.25 points and the one-year stood at 157 points, from 160.50.

The one-month offshore non-deliverable forward contracts were quoted at 45.9, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 45.7625. The total volume was at $1.39 billion.

Copyright Reuters, 2011