The Indian rupee weakened against the U.S. dollar in the late morning deal on Wednesday, after China's central bank cut its reference rate for a second time following a record reduction on Tuesday.

The People's Bank of China on Wednesday set its reference rate at 6.3306 per dollar, up slightly from Tuesday's close but 1.6 percent lower than the previous day's fixing rate. The central bank devalued the yuan by 1.9 percent on Tuesday.

Against the greenback, the greenback fell to nearly a 2-year low of 64.8900 from an early high of 64.2100. At yesterday's close, the rupee was trading at 64.2000 against the greenback.

If the rupee extends its downtrend, it is likely to find support around the 68.80 area.

Traders await the nation's inflation data for July and industrial production data for June, due later in the day.

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