The bank said the move was to counter "imbalances" as the rupee falls against the dollar "and to preempt the buildup of any excessive inflationary pressures"
Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4765 per dollar, 48 pips or 0.07% weaker than the previous fix of 6.4717
The dollar eased to 109.24 yen, having lost about 1% over the past two sessions while the euro slipped to as low as 128.50 yen, touching its lowest level since late March
The US currency was underpinned by data, released on Thursday, showing US producer prices posted their largest annual increase in more than a decade in the 12 months through July
The dollar hovered around a two-week low, weighed down by the latest insistence from Federal Reserve chairman Jerome Powell that rate increases are still some way off
Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4763 per dollar, 113 pips or 0.17% weaker than the previous fix of 6.4650