The rupee had ended five paise lower at 61.92 on Tuesday.
Sustained inflows of foreign funds supported the rupee
Falling for the second day, the rupee on Friday weakened by 12 paise against dollar to end at 62.68 weighed down by demand for the American currency from importers and data showing fiscal deficit crossed 95 per cent of the annual target during April-December.
RBI Governor Raghuram Rajan plans to write on 'academic issues' after leaving the Reserve Bank.
The huge pressure on the currency market largely went unnoticed because of the demonetisation exercise.
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
The rupee ended marginally lower by three paise at 66.36 against the US dollar.
The rupee had gained by 50 paise or 0.75 per cent in two weeks.
The improvement in the current account deficit is expected to provide a major reprieve to the government and the Reserve Bank of India which have been battling to prop up the rupee.
Increased selling of the dollar by banks and exporters amid sustained foreign capital inflows supported the rupee.
Reserve Bank Governor Raghuram Rajan today criticised multilateral institutions like the IMF and the World Bank saying "they are not immune to cognitive capture".
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Snapping a two-day fall, the rupee opened strong at 59.49 a dollar from the previous close of 59.76 at the Interbank Foreign Exchange Market and then touched a low of 59.59.
The trend was visible in the early trade on Thursday as investors indulged in trimming their bets after the minutes of the US Federal Reserve's September meeting indicated a possible rate hike this year.
Rajan sees banks passing on the benefit of lower rates regime to customers.
Fresh dollar demand from banks and importers amidst volatile equities triggered the fall
The rupee had gained 6 paise to close at 60.07 against the dollar in Thursday's trade on fresh selling of the American currency by banks and exporters in view of strong capital inflows.
Volatile currency market sentiment across Asia following a fresh round of China's yuan depreciation further added to gloom.
The rupee appreciated by 29 paise to close at 63.38 against the greenback following fresh dollar selling by exporters.
However, the hefty initial gains of the rupee, which had jumped to 61.05 intra-day, were substantially erased on month-end demand for US dollars from private oil firms and some defence-related purchases, amid fall in domestic stocks.
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The rupee tumbled past 63.00 to the dollar, down about 2 per cent on the day and breaching the previous low of 62.03 hit on Friday despite a spate of measures in recent weeks by the central bank and government to defend it.
Lower IT exports will raise India's dependence on capital flows to fund imports.
The rupee had slumped to its all-time closing low of 68.80 a dollar on August 28, 2013.
The rupee recovered by 11 paise to trade at 60.84 against the US dollar in early trade today on selling of the American currency by banks and exporters.
The RBI has enough "fire power" to deal with the rupee volatility and will intervene in the forex market as and when required, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The dollar gained against other currencies overseas.
Hiccups in Chinese economy and the overall strength of the dollar will continue to be a drag on the rupee in the coming year
The domestic currency has already dropped 44 paise, or 0.67 per cent, in the previous two sessions.
The rupee has depreciated by about 25 per cent in the past three months, from close to Rs 83 in mid-May, while it was even higher at about Rs 80 against the British Pound in March.
The dollar maintained its bullish momentum in Asian and early European trade
Rajan said that even though inflation has breached the 6 per cent mark as against the RBI target of getting it down to 5 per cent by March 2017, the price rise scenario will ebb in future
The US Fed on May 24 hinted at withdrawing its third round of quantitative easing, or bond buying programme, worth $85 billion each month, which began in the wake of the worst credit crisis in September 2008.
The rupee on Monday plunged to a two-week low of 66.61 by falling 47 paise against the US dollar on heavy demand for the American currency from importers.
Duvvuri Subbarao recounts how his tensions with P Chidambaram and Pranab Mukherjee, then finance ministers, over monetary policy spilled over into other issues in the central bank in this excerpt from Who Moved My Interest Rate?, his memoir of his term as Reserve Bank of India governor.
For the week, the battered rupee gained 26 paise against the greenback
The rupee showed range-bound movement on Wednesday as investors preferred to stay cautious in the unsure market.
Rupee is under pressure against the dollar say currency watchers.
After another day of volatile trade, the rupee today appreciated by seven paise to close at a new one-month high of 59.04 against the dollar as the RBI's liquidity-tightening measures continued to lend support.
Risk sentiment is likely to be favourable if oil prices stay benign, global growth sentiment remains robust and the dollar index does not break out, says B Prasanna.
Govt rules out controls on FII capital as Sensex tanks 3.97%, rupee breaches 62 intra-day & gold surges the most in two years
A weaker rupee might stimulate Indian exports and nullify some of the effects of Chinese devaluation.
