A strong dollar overseas and some hesitancy in local stocks, however, limited the rupee rise.
Volatile currency market sentiment across Asia following a fresh round of China's yuan depreciation further added to gloom.
The rupee had firmed up 16 paise to close at 67.52 on Thursday.
Increased demand for the dollar from importers put pressure on the rupee.
Adequate dollar supply gave a boost to the local currency
The trading range for the Spot USD/INR pair is expected to be within 66.20 to 67.00.
Extending losses for the second straight day, the rupee declined by 11 paise to close at more than 3-week low of 66.93 against the US dollar.
Rupee is under pressure against the dollar on weak cues.
The rupee edged higher by three paise to 66.46 against the US dollar in early trade on Wednesday.
Bullion traders said subdued demand at current levels and a weak global trend mainly pulled down both gold and silver prices.
The rupee is trading weak against the dollar in afternoon trade.
The markets had touched their highest levels in a month.
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
Bearish dollar overseas also supported the rupee
Unwinding of long dollar positions ahead of the US job data backed the rupee sentiment
US dollar was firm against global currencies in overseas markets on rising prospects for a rate hike by US Federal Bank, which hit the rupee sentiment
The recovery in equities in the early session capped the rupee's fall.
Rupee is seen to remain in the range of 67.50-68.80 in the short-term
The domestic currency has gained 9 paise or 0.13 per cent in two days.
Persistent foreign capital inflows also boosted sentiment.
The rupee had shed four paise at 63.81 against the US dollar in Friday's trade on sustained demand.
A derivative is a product whose value is derived from the value of one or more underlying variables or assets in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset.
The rupee appreciated by 0.27 per cent in June against the dollar.
The rupee had plunged by 19 paise to close at over 3-week low.
India's sad export figure put pressure on the rupee
Healthy demand for the American unit from importers and corporate weighed on the rupee
The rupee has dropped by 60 paise or 0.89 per cent in the last three trading days.
The rupee slipped marginally by two paise at 66.43 against the US dollar on good demand
Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiments
Silver also rose sharply by Rs 640 to Rs 35,700 per kg.
In Delhi, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 650 each to Rs 27,470 and Rs 27,270 per 10 grams respectively.
Silver advanced by Rs 150 to Rs 34,200 per kg on increased offtake.
Fresh dollar selling by banks and exporters largely helped the home currency to recover from early losses
Dealers attributed the rupee's fall to fresh demand for USD.
The rupee on Thursday plummeted to an over three-month low of 63.32 by losing 50 paise against the US dollar.
A lower opening at the domestic equity market and the dollar's rise against other major currencies overseas also put pressure on the rupee, dealers said.
The rupee on Friday snapped its two-day gaining streak against the US dollar.
The rupee declined marginally by 3 paise to 66.03 per dollar on fresh demand for the US currency from banks and importers.
The Indian currency resumed lower at 61.50 per dollar as against the last closing level of 61.46 at the Interbank Foreign Exchange Market.
