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.
The Indian rupee had lost 10 paise to close at 64 on Thursday.
The rupee strengthened by 13 paise to 61.67 against the US dollar at close.
Investors are anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over Kashmir issue.
Increased selling of the US dollar by exporters supported the rupee.
The rupee had shed 10 paise to close at 66.14.
Rupee weakened by 10 paise to end at 66.14 against the dollar due to month-end demand from importers and banks.
The benchmark Sensex conquered yet another milestone of 28,000 for the first time briefly before concluding at a new closing peak of 27,915.88, a rise of 55.50 points of 0.20 per cent.
The Indian rupee will bounce from its record low level of close to Rs 52 against the greenback and will gain about 10 per cent in 12 months once overseas borrowings resume, Goldman Sachs has said.
A fresh demand for the US currency from importers weighed on rupee.
Ouch! The dollar's drop translates into rapidly rising rents for some residents of these 10 cities.
The deficit means foreigners are sitting on constantly growing piles of American currency
The local currency had gained 10 paise to close at 63.51.
On Wednesday, the rupee ended barely steady at 64.93.
The Indian rupee today dipped to a two-year low of 46 against the US dollar following heavy demand from importers for the greenback.
A fall in the dollar against major currencies and higher capital flows have pushed up the rupee against the greenback. "To the extent that RBI, with a view to reduce undue volatility, intervened in the foreign exchange market, such appreciation was moderated," he told Lok Sabha.
Gold price is declining due to the strengthening of dollar in the wake of the US Federal Reserve's move to control rate on inflation concerns.
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Falling for the third day, Indian rupee on Wednesday weakened by 14 paise to close at over one-week low of 62.02 against the Greenback.
Resuming its slide against the greenback, the Indian rupee plunged to its more than one-year low of 41.76/77 against a US dollar. Heavy demand for US currency in view of high oil prices continued modest on its short supply. The Interbank Foreign Exchange (Durex) market witnessed brisk trade with wide fluctuations in the local currency in a range of 41.55 and 41.79 during the day. The local currency lost 41 paise against the US counterpart.
The rupee firmed up by 15 paise to close at 62.36 per dollar on fresh selling by banks
The rupee had shed 9 paise to end at 64.13 on Friday.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up by 0.31 per cent at 97.52.
Sensex crashed more than 1,000 points in opening trade. Asian stocks plunged too on Friday.
The rupee on Monday tumbled by 68 paise to close at a nearly 8-week low of 66.44 against the American currency.
The greenback's strength against other Asian currencies and lacklustre local equity markets made the rupee depreciate.
Rising productivity and product diversification ensured high export growth in the past.
The rupee is under pressure for the past one week.
The rupee settled at 61.71. In straight three sessions, the currency has shot up 51 paise or by 0.82 per cent.
The rupee surged to its highest level in five weeks to end at 65.58 by gaining 38 paise against the US currency.
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
Extending losses for the fourth straight session, Indian rupee on Monday declined by ten paise to log over 13-month closing low of 63.67.
The rupee fell to an all-time low of 61.21 per dollar, forcing the Reserve Bank of India to intervene to stabilise the currency.
The local currency had shed 2 paise to close at 63.44 on Tuesday.
India Inc is unfazed by the sharp fall of the rupee against the greenback as most big firms have already hedged their foreign exchange exposures.
The rupee closed marginally stronger against the dollar on Wednesday.
Rupee closed at 61.86 against the dollar on Tuesday.
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The dollar index eased 0.05 per cent to 98.69.
The rupee edged higher by three paise to 66.46 against the US dollar in early trade on Wednesday.