The rupee resumed lower at 61.15 per dollar as against the last weekend's level of 61.07 at the Interbank Foreign Exchange market and hovered in the range of 61.15 and 61.28 before quoting at 61.24 per dollar at 1030 hours.
In forward market, premium for dollar continued to fall due to persistent receivings from exporters.
The rupee came under pressure on demand from importers as the dollar strengthened overseas.
However, the budget arithmetic is slightly optimistic.
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
Financial services firm AnandRathi analysed the key points of the policy soon after it was announced.
The rupee had jumped by 164 paise or 2.39 per cent in previous six trading days.
According to the report by the global financial services major, the FY2013-14 CAD is expected to be within $36 billion or 2 per cent of GDP, and this fiscal year CAD is likely to be slightly higher but contained at 2.3 per cent of GDP.
The rupee hit a near 10-month high as an alliance led by pro-reform and business friendly Hindu nationalist Narendra was on course for an absolute majority.
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In the global market, the US dollar rose against the basket currencies in early trade as US President Barack Obama called for diplomacy in dealing with alleged chemical weapons attack in Syria but kept open the possibility of military action against the Assad regime.
A sustained rise in equity market also boosted the rupee sentiment.
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Steps announced by new RBI Governor Raghuram Rajan could attract $10 billion of forex inflows in the next three months and this could be a material near-term positive for the rupee, which has lost 20 per cent since January, the London-based banking and financial services company said.
The domestic currency has dropped 40 paise or 0.60 per cent in two days
A strengthening dollar overseas also kept the rupee under pressure amid demand from importers. Goldman Sachs followed JP Morgan, HSBC and Nomura in cutting India's economic growth forecast and also said it expects the rupee to touch 72 against the dollar in the next six months.
The rupee had gained 10 paise to close at 60.11 against the dollar in Tuesday's trade on fag-end selling of the US currency by banks and exporters.
Even the persistent rise in equity market failed to restrict the rupee's fall.
The domestic currency has dropped by 62 paise or 0.93 per cent in four trading days.
The dollar's weakness against rivals overseas supported the rupee.
Sharp fall in domestic stock market also affected the rupee sentiment.
Weakness in dollar in the overseas market also boosted the rupee value
Forex dealers said strengthening of dollar against other currencies in the global market also put pressure on the rupee but a higher opening of the domestic equity market limited the fall.
The dollar's weakness against other currencies overseas and a higher opening in the domestic equity market supported the rupee, forex dealers said.
The local currency opened higher at 61.20 a dollar from the previous close of 61.30 at the Interbank Foreign Exchange Market.
Forex dealers said rebound in domestic stock markets also helped the rupee strengthen against the dollar.
Increased demand for the American unit from importers and banks, affecting the value of the rupee
Besides the convenience that plastic money accords, it also helps the user to keep an easy track of their expenses.
A weak dollar overseas failed to restrict the rupee's decline, a forex dealer said.
The rupee has dropped by 60 paise or 0.89 per cent in the last three trading days.
The rupee continued to rule firm against the dollar for the second consecutive day.
The rupee has lost 37 paise or 0.55 per cent in two days.
The rupee recovered by three paise to close at 67.65 on fresh selling of dollars by banks and exporters amidst a recovery in equities.
ITC, Sun Pharma, Cipla and Tata Steel were top gainers on BSE Sensex
The US dollar's weakness against some currencies overseas capped the losses.
The trading range for the Spot USD/INR pair is expected to be within 66.20 to 67.00.
The rupee has dropped by 83 paise or 1.24 per cent in three days
The rupee snapped its two-day winning run against the dollar.
The rupee showed range-bound movement on Wednesday as investors preferred to stay cautious in the unsure market.
The Reserve Bank of India is likely to cut policy rates by 0.25 per cent and keep the cash reserve ratio unchanged at its policy review next week, on the back of slower-than-expected growth and more encouraging inflation readings, says a report by HSBC.
The rupee continued to slide against the pound sterling and finished at 102.64 as against 102.25 previously.
The domestic unit moved in a range of 64.14 and 63.99.
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