The rupee strengthened by 14 paise to close at 66.41 against the US dollar on Wednesday.
In a meeting with Reserve Bank of India Deputy Governor Rakesh Mohan on Monday, bankers expressed concerns that interest rates had not shown signs of softening despite ample liquidity and overnight rates being at close to 1 per cent levels.
The rupee gained 28 paise on Thursday to close at 62.50.
Reflecting nervousness over the prospect of the Federal Reserve tightening policy and event risk, traders stayed on the sidelines
Unwinding of long dollar positions by banks too aided the sentiment
In forward market, premium for dollar continued to fall due to persistent receivings from exporters.
The rupee had lost 27 paise to close at more than 5-week low.
At lower levels, a supportive buying in dollar forced rupee to depreciate since opening trade
In forward market, premium for dollar declined in view of mild receivings from exporters.
The domestic currency has already dropped 44 paise, or 0.67 per cent, in the previous two sessions.
The rupee has gained by 21 paise or 0.31 per cent in last two days
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was sharply higher by 0.62 per cent at 93.96.
The rupee had retreated from three-week high and ended six paise down at 60.67 against the dollar on demand from importers for the US currency in Thursday's trade.
Rupee was impacted by renewed dollar demand from banks and importers amid sharp falls in equity market
Increased demand for the dollar from importers affected the value of the rupee
The rupee had lost 21 paise on Tuesday's trade.
India's sad export figure put pressure on the rupee
The rupee ended weaker against the greenback on domestic worries.
The rupee on Tuesday recovered from its two-week low to end steady at 66.60 against the American currency, inching up by a paisa on the back of mild dollar selling.
The domestic currency tumbled by 45 paise or 0.68 per cent in two days.
The rupee continued to resist the pressure from oil companies and appreciated marginally against the US currency in Wednesday morning dealings.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 42.20/22 a dollar from Tuesday's close of 42.10/12. It dropped further to a low of 42.67 a dollar due to heavy dollar buying by oil refiners as the global crude oil prices remained near $126 a barrel after striking a new peak of $126.98 a barrel in intra-day trade at New York on Tuesday. Sustained capital outflows also partly affected the rupee sentiment.
In overseas trade, the American currency traded lower against the yen and the euro in an Asian session as well as modest profit-taking after recent sharp gains
Forex dealers said dollar's weakness against other currencies overseas supported the rupee.
Persistent fall in crude oil prices affected the market sentiment
The dollar index, which tracks the world's reserve currency against a basket of its peers, is down 0.16 per cent at 97.58.
Increased demand for the dollar weighed on the local currency.
The rupee had risen for the fifth straight session on Thursday.
The rupee recovered from initial losses against the American currency and was quoted higher by 6 paise to 62.00 on fresh selling of dollars by banks and exporters in view of strong foreign capital inflows into equity market.
The rupee plunged by 28 paise to more than 2-month low of 66.47 against the US dollar on Monday.
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
In the global market, the US dollar index, which tracks the greenback against a basket of six major rivals, was up by 0.33 per cent.
Sluggish domestic equities and persistent capital outflows largely pressurised the Indian unit
A weakening dollar against other currencies overseas supported the rupee.
The dollar's weakness against some currencies overseas limited the rupee's fall.
The rupee had ended five paise lower at 61.92 on Tuesday.
The domestic currency had lost 15 paise to close at 63.82 on Wednesday.
The rupee on Monday failed to maintain initial gains and ended lower by five paise at 60.21 against the dollar on fag-end demand for the US currency from banks and importers.
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.
Recovery in the equity market also boosted the rupee value against the dollar, a forex dealer said
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