The rupee eased on Wednesday, weighed by dollar demand from local oil refiners, but firm domestic equities and hopes that the eurozone will take concrete steps to resolve the region's debt crisis could keep a lid on the losses.

Rupee

Rupee

* At 9:32 a.m., the partially convertible rupee was at 51.48/49 per dollar, weaker Monday's close of 51.41/42. The market was closed on Tuesday for a religious holiday.

* The euro recovered from a dip to one-week lows in Asia on Wednesday, with markets cautiously optimistic that recent credit warnings by Standard & Poor's would spur European leaders into more decisive action at this week's summit.

* Traders said the central bank's assurance that it would prevent the rupee from falling sharply by intervening in the forex market would also underpin the market sentiment.

* The BSE Sensex was up 0.6 percent.