The rupee had lost 23 paise to end at 54.09 in Tuesday's trade due to month-end dollar demand.
Expectations of good foreign capital inflows into equity market in view of firm trend in the stock market also boosted the rupee value against the dollar.
Rupee is likely to remain under pressure due to domestic concerns.
Soon after taking over as RBI Governor on September 4, Raghuram Rajan had announced opening of a swap window facility to encourage banks to lure NRI funds.
In the Sensex pack, IndusInd Bank was the top gainer, soaring around 8 per cent, followed by Bajaj Finance, Axis Bank, PowerGrid, ONGC, ICICI Bank, Sun Pharma and M&M.
The US currency's decline against major world currencies alongside fag-end dollar supply largely helped the rupee recoup some of its initial losses
Sustained month-end demand from banks and importers weighed.
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.
The rupee is expected to become more jittery and choppy in the near-term
L&T was the top loser in the Sensex pack, dropping 4.99 per cent, after the engineering major posted a 45 per cent decline in consolidated net profit for the September quarter. Titan, ONGC, Axis Bank, HUL, NTPC, M&M and HDFC were the other major laggards, shedding up to 3.32 per cent. NSE Nifty fell 58.80 points or 0.50 per cent to 11,670.80.
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 closes 12 paise down against the dollar.
The rupee on Wednesday gained 14 paise to 54.04 against the dollar in early trade at the Interbank Foreign Exchange on sustained selling of the US currency by exporters and banks.
In cross-currency trades, the rupee firmed up further against the pound sterling
Weakness of dollar in the overseas market also boosted the rupee value.
A firming trend in domestic stock markets, however, capped the rupee fall to some extent
The NSE Nifty settled at 10,234.65, down 225.45 points, or 2.16 per cent.
The rupee recovered by 13 paise to close at 66.31 per dollar on fresh selling of dollars by banks and exporters despite fall in equity market.
The RBI also asked the oil marketing companies to smoothen their daily dollar demand so that upcoming bunched up demand was covered in advance in forward markets or on days with low dollar demand.
The RBI also asked the oil marketing companies to smoothen their daily dollar demand so that upcoming bunched up demand was covered in advance in forward markets or on days with low dollar demand.
The dollar was weak against major world currencies.
The rupee has lost 37 paise or 0.55 per cent in two days.
The Institute of Economic Growth has forecast a depletion in the foreign exchange reserves to $79 billion in August mainly due to over $4 billion dollar payout of Resurgent India Bonds.
The rupee on Monday appreciated by 9 paise to 53.75 against the US dollar in early trade at the Interbank Foreign Exchange on selling of the American currency by exporters and banks.
The RBI is still a small player in international gold buying among central banks. But in terms of total gold bought in 2019, it is the sixth largest buyer with 25.2 tonnes purchases in the first 10 months of 2019.
The broader NSE Nifty too dived by 131.70 points, or 1.24 per cent, to close at 10,453.05.
Rupee is seen strengthening against the dollar.
Weakness in dollar in the overseas market also boosted the rupee value
The ICE dollar index, which measures the dollar against a basket of six currencies, traded at 79.522 from 79.595 in the previous session.
A weak dollar overseas failed to restrict the rupee's decline, a forex dealer said.
The rupee closed at Rs 66.21 in its last trading session.
The Rupee is seen weakening further against the dollar.
The Indian rupee on Monday appreciated by 16 paise against the American currency in early trade on hopes of increased capital inflows from foreign funds boosted by last week's rally in the stock markets.
'The prospects for both India and the global economy is that we are headed towards a very difficult time.' 'I see very uncertain at least 8-10 months for both India and the rest of the world.'
The rupee on Wednesday strengthened by another 3 paise to 62.82 against the US dollar.
The rupee snapped its two-day winning run against the dollar.
Weak trends in local stocks with Sensex dropping by 129 points also weighed on rupee but some capital inflows limited its decline to some extent, forex dealers said.
Robust capital inflows alongside a slightly weaker greenback too reinforced the dominance of the home currency
The best way of judging currencies is by finding out how they are performing at the foreign exchange market.
Robust trade flows and remittances by expatriates helped India's foreign exchange reserves rise for the 15th straight week to a record high, analysts said after the central bank released the latest data on Saturday.
