A weak dollar in overseas markets also strengthened the rupee sentiment
The domestic currency had lost 10 paise to close at 59.03 against the dollar in Thursday's trade amid capital outflows linked to fall in equities.
The rupee had plummeted to over three-month low of 63.32.
Rupee rises by 16 paise against dollar on fresh selling.
Dollar gained against major currencies overseas.
Dollar sales by exporters and firm local equities also supported the local currency.
The rupee ended higher for the second consecutive week.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
The rupee had ended almost flat at 61.41 against the Greenback in the previous session on Wednesday on alternate bouts of buying and selling.
'India's sizeable foreign exchange reserves should serve as a buffer.'
The dollar's preliminary moves after the low 80.90 are supportive of a like dollar rally back to 85.50. We should see confirmation of that in the early part of next week, says Sonali Ranade
The rupee had gained 28 paise against the American currency to settle at nearly two-month high at 66.74 in Monday's trade.
Weakness of the dollar against other currencies overseas gave the rupee more muscle.
Traders expect the rupee to remain wedged between the 59.60 and 60.50 levels in the absence of any key triggers in the near-term.
The rupee recovered marginally at close against the dollar.
In recent sessions, shares have rallied on hopes Hindu nationalist opposition leader Narendra Modi, a more business-friendly candidate, is seen coming to power on promises of economic revival and jobs.
The rupee on Friday fell by 9 paise to 67.64 per dollar on fresh demand for the American currency.
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.
The rupee came under pressure on demand from importers as the dollar strengthened overseas.
At lower levels, a supportive buying in dollar forced rupee to depreciate since opening trade
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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.
Investors are anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over Kashmir issue.
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 Indian unit opened sharply higher at 64.80 as against Wednesday's closing level of 65.12.
The local currency opened higher at 61.20 a dollar from the previous close of 61.30 at the Interbank Foreign Exchange Market.
A weak dollar overseas failed to restrict the rupee's decline, a forex dealer said.
Rupee gained on increased selling of the US currency by banks and exporters
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
The RBI fixed the reference rate for the dollar at 64.1505 and for the euro at 72.2720.
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.
The rupee on Tuesday weakened by 15 paise to close at 63.30 against the US currency
Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiments
Snapping its two-day gains, the rupee on Monday declined by 48 paise to settle at nearly four-week low of 62.17 against the US currency.
The Indian rupee on Tuesday ended marginally higher against the American currency at 61.41 amid volatile trading on the back of a higher dollar overseas.
Rupee was impacted by renewed dollar demand from banks and importers amid sharp falls in equity market
Weakness in the dollar against some currencies supported the rupee.
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Some analysts believe that markets are expected to remain unclear and would have to wait until tomorrow's US non-farm payrolls data.
Assume that the rupee will trend lower over the next 10 years as India increases overseas sovereign exposures, and your long-term asset allocation should be geared to deal with this trend, suggests Devangshu Datta
The rupee extended gains for the second straight session against the US currency by firming up 21 paise to close at 64.82 a dollar.
The dollar's weakness against rivals overseas supported the rupee.
