The Indian rupee reversed early gains and weakened on Monday tracking a rise in the dollar versus major currencies on a global basis but a positive domestic share market helped prevent a further slide.

The partially convertible rupee was at 45.63/64 per dollar at 1:55 pm, which was a little weaker from 45.615/625 at close on Friday when it touched a seven-week low of 45.77. A measure of the greenback's performance against six major currencies, the dollar index, was up 0.2 percent at 78.360 points. The euro backed off a high of nine weeks with sharp gains of the past two weeks after worries about euro zone debt inducing profit-taking eased, it is believed that the single currency's advance may go milder with more of neutral market positioning.

Indian shares were trading up 0.5 percent and were led by top lender of the country, State Bank of India, after it posted better-than-expected quarterly profit. The Reserve Bank of India, the central bank of India, is expected to resume its rate hike cycle at the quarterly monetary policy review as soaring inflation stalks Asia's third-largest economy, which is an event that forex traders are closely monitoring for its implications on the local stock market.

The most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX, and the United Stock Exchange were all at 45.6750 in the currency futures market, with the total traded volume on the three exchanges at $3.5 billion.