The rupee opened slightly higher by Rs 67.24 against Tuesday's closing level of Rs 67.26 per dollar.
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.
Rupee falls 5 paise against dollar, ends at 61.92.
Analysts said even though the Indian economy is expected to slow down to 7.2 per cent in fiscal 2020, it is still the best bet for investment for foreign investors.
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.
India needs foreign exchange buffer reserves to insulate itself from exchange rate volatility as we have "no friends" for swap lines and Japan was the only country that helped during the taper tantrum in 2013, former RBI Governor Raghuram Rajan said on Tuesday. Participating in a virtual event organised by economic think tank NCAER, Rajan said during the taper tantrum in 2013, India asked for swap lines, and only country who helped was Japan. "We need this (foreign exchange) reserve buffer to insulate ourselves because we have no friends.
Spurting by a whopping 21 paise, the rupee scaled a fresh over 50-1/2-month closing peak at Rs 43.53/54 per dollar on Wednesday.
The rupee closed marginally stronger against the dollar on Wednesday.
Email alarm made government close arbitrage window
The RBI opened a forex swap window in August to meet the entire daily dollar requirements of three oil marketing companies as the rupee depreciated to an all-time low of 68.85 against the US currency.
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.
In forward market today, premium for dollar declined on sustained receivings from exporters.
The broader NSE Nifty closed below the 10,200-mark by slumping 99.85 points, or 0.98 per cent at 10,124.905.
The report said the import cover has gone down to seven months, last seen in 1998 and hence, RBI will focus on recouping the reserves.
The rupee resumed higher at 67.77 per dollar as against last Friday's closing level of 67.78.
HDFC Bank was the top loser in the Sensex pack, shedding over 2 per cent, followed by Kotak Bank, Bajaj Finserv, Maruti, Titan, SBI, HUL, HDFC and Tata Steel. On the other hand, Bharti Airtel, M&M, NTPC, Tech Mahindra, Sun Pharma and PowerGrid were among the gainers.
The rupee fell by 49 paise to close at 81.89 (provisional) against the US dollar on Monday as heavy selling pressure in the domestic equities and a spike in crude oil prices weighed on the local unit.
Increased demand for the dollar from importers affected the value of the rupee
The rupee appreciated by 37 paise to 62.12 against the dollar in early trade on Monday.
A weak dollar in overseas market boosted the rupee sentiment
Financial shares were the top losers.
The BSE benchmark Sensex surged about 241 points to end at 35,165.48 and the NSE Nifty gained 84 points to close at 10,688.65.
Firm equity market failed to restrict the rupee's fall against the dollar
The interbank foreign exchange (forex), call money markets, cotton, metals, sugar and future trading in castor seeds will remained officially closed on Friday on the occasion of Ramnavami.\n\n\n\n
The rupee extended gains for the fourth straight day against the US currency on Thursday.
The local currency had shed 2 paise to close at 63.44 on Tuesday.
It moved in a range of 66.9250 and 66.70 per dollar during the day
The home currency failed to keep momentum going and largely traded in a narrow range with positive bias in the absence of any market moving factors
The rupee had closed at 64.83 last Friday.
Corporate earnings in this quarter may take a hit on account of the equity exposure that companies may have taken following a bad quarter for the Indian markets, say market analysts.
Earlier, the rupee resumed slightly lower at 61.70 per dollar as against Tuesday's close of 61.69 at the Interbank Foreign Exchange market.
The currency lost six paise on sustained dollar demand from importers.
The rupee ended weaker against the greenback on domestic worries.
The RBI fixed the reference rate for the dollar at 63.8061 and for the euro at 69.6571.
The rupee closed almost flat at 65.76 against the US dollar on some demand for the American currency from banks.
Markets ended at record closing highs for the second day in a row on institutional buying.
The dollar was weak against major world currencies.
Markets extended losses and were down 1.5% each in late noon trades with bank shares leading the decline after the RBI mooted extra provisioning and capital requirement for banks' exposure to companies with unhedged forex exchange positions.
Recovering from early losses, the rupee on Friday ended marginally higher at 64.81 against the US dollar.
India's banking system is expected to remain unscathed from the troubles in Credit Suisse as it has a very small presence in the country, experts said. Although Credit Suisse is more relevant to India's financial system than Silicon Valley Bank (SVB), it has very limited operations, according to a report by Jefferies India. The Switzerland-based bank, the report said, "has less than Rs 20,000 crore in assets (12th among foreign banks), presence in the derivatives market and funded 60 per cent of assets from borrowings, of which 96 per cent are up to two months.
