The rupee depreciated by 17 paise to end at nearly one-month low of 61.72 against the greenback on Friday on sustained dollar demand even as domestic equities surged to new highs.

But gains in the rupee were kept in check as domestic shares faltered, ending a five-session gain.

The rupee had lost 30 paise to close at 61.35 in the previous session on Friday on fresh demand for the US currency from banks and importers due to firm dollar overseas and sharp fall in local equities.

The rupee had recovered by 19 paise to close at 61.15 against the dollar in Friday's trade in tune with local equities.

Forex dealers said besides a lower opening in the domestic equity markets, increased demand from importers for the American unit put pressure on the rupee but dollar's weakness against other currencies overseas capped losses.

The rupee had plunged by 48 paise, logging its biggest fall in more than five weeks, to close at over one-month low of 61.13 against the greenback on Monday following demand for the US currency from importers.

Forex dealers said besides fresh demand from importers for the American unit, a lower opening in the domestic equity market as well as decline in industrial production growth to 4-month low of 0.5 per cent in July, put pressure on the rupee.

On Tuesday, the domestic currency had gained 13 paise to close at nearly four-week high of 60.43 against the American unit following fresh dollar selling by exporters and sustained investments by foreign funds.

Analysts said any mass cancellation of the coal blocks could lead to a surge in imports and widen the trade deficit given the impact on domestic production.

The rupee recovered 20 paise to close at over three-week high of 60.47 against the US dollar in the previous session on Friday following strong local equities and capital inflows.

The rupee fell 13 paise to end at 61.21 against the American currency in Wednesday's trade following fresh dollar demand from importers, amid uptick in retail inflation and slowing industrial production growth.

The rupee had weakened by 2 paise to end at 61.17 in yesterday's trade on late dollar demand from importers amid fresh capital outflows.

The rupee had gained seven paise to close at 61.15 on Friday on suspected RBI intervention in the forex market.

The rupee had plunged 65 paise in its biggest single-day drop in over six months to end at 61.49 in Wednesday's trade against the greenback, hit by spike in dollar demand and negative cues from local stocks.

Forex dealers said apart from month-end demand for the American currency from importers, dollar's gains against other currencies overseas amid US data showing more-than-expected economic growth in the second quarter also put pressure on the local unit.

The dollar's gains against other currencies overseas and a lower opening in the domestic equity market also put pressure on the local unit, forex dealers said.

In New York, the dollar was up last Friday against its major rivals following weak German economic data.

Dealers said increased demand for dollar from importers mainly put pressure on the local unit but a higher opening in the domestic equity market and gains in other currencies overseas against the dollar capped the losses.

Weakness in other currencies against the dollar overseas, after US Fed indicating interest rates could rise earlier than expected as the jobs market picking up, also put pressure on the local unit, forex dealers said.

Forex dealers said besides dollar's gains against other currencies overseas, increased demand from oil importers for the US currency put pressure on the rupee.