Mumbai: The Rupee resumed marginally lower against the US currency following heavy selling by foreign funds in equity markets amid some dollar buying by banks for their clients.

In limited activity at the Interbank Foreign Exchange (FOREX) market, the Indian unit opened weak at Rs 44.7550/7650 a dollar as against Wednesday's close of Rs 44.71/72 a dollar but later recovered modestly to quote at Rs 44.7350/7425 per dollar in late morning deals.

The dollar gained modestly against the Euro on Wednesday but made a big advance against the Yen, hitting an intra-day four-week high.

According to dealers, the market is likely to remain lacklustre with most investors deciding to keep sidelines ahead of the Christmas holidays.

Foreign Institutional Investors (FIIs) pulled out nearly US$ 149 million from equity markets in the last couple of days.

There was some buying by banks on behalf of importers as global crude oil rose 26 cents to close at US$ 63.72 a barrel after earlier touching a three-month peak of USD 64.15 a barrel on New York Mercantile Exchange yesterday.