Emerging markets tracked falls in Wall Street and a rise in U.S. bond yields after a San Francisco Federal Reserve Bank paper released on Monday showed investors underestimated the speed at which the Fed might raise interest rates.
That raised concerns the U.S. central bank could signal an earlier-than-expected rate hike at its next policy meeting on Sept. 16-17.
The partially convertible rupee traded at 60.8850/8950 per dollar, its weakest level since Aug. 14, at12:50 p.m. (0720 GMT). The rupee had ended trade on Tuesday at 60.60/61.
Traders expect the rupee to hold in a 60.70 to 61.00 to a dollar range in the rest of the session.