Mumbai: The rupee fell against the dollar on Wednesday but in line with a wider fall in Asian currencies following deadly bomb blasts in the financial capital Mumbai on Tuesday.
At 1053 hrs IST, the partially convertible rupee was at 46.19/20 per dollar, down from Tuesday's close of Rs 46.1700/1750 per dollar.
It began trading at Rs 46.22 per dollar.
"The markets are probably not reacting much to the blasts. There is no knee-jerk reaction even. It's good," a dealer with a foreign bank said.
Dealers said trading is likely to be thin although dealing rooms were largely well attended.
Investors would focus on whether foreign fund inflows would be restrained after seven blasts hit Mumbai's crowded rail network during rush hour on Tuesday.
The rupee's fortune has largely swayed with foreign investments into the stock market this year.
Indian shares attracted nearly $5 billion between January and early May but the amount has nearly halved since then.
The rupee touched a three-year low of 46.57 per dollar at the end of May following a steep stock market correction.
Indian shares initially fell in choppy trade on Wednesday but the downside was limited by forecast-beating earnings from bellwether Infosys Technologies Ltd and by midmorning the main index had turned positive.
The Reserve Bank of India (RBI) said it would monitor the financial markets closely after the blasts but expected critical payments systems to operate normally.
The RBI said on Wednesday that it had made all arrangements to ensure uninterrupted continuation of normal services rendered by it.
In a release, the apex bank stated that its critical payment systems such as RTGS system and Negotiated Dealing System (NDS) would function normally on Wednesday.
All auctions, including liquidity adjustment facility and treasury bills would be conducted as scheduled and the financial markets would be closely monitored, the RBI stated.
With inputs from Reuters and PTI
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