Although the current long-term bullish trend is intact, markets are awaiting clarity on the taper and the Assembly election results.
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 session was marked by volatility and stock-specific action, even as the overall sentiment remains risk-averse, brokers said.
Both the indices ended at their highest levels since February 1.
The broader NSE Nifty moved between 10,705 and 10,785.55, before ending 25.15 points, or 0.23 per cent down at 10,716.55.
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.
The unearthing of capital flight of "black" money Indians have allegedly stashed away in Swiss banks could add $30 billion to the country's forex reserves, says a Bank of America Merrill Lynch report.
The next 12 months will be quite challenging marked by uncertain political events and evolving macroeconomic scenario
The rupee recovered marginally at close against the dollar.
Despite the possibility of the economy bottoming out, the investment cycle could remain weak for another couple of years and earnings downgrades should continue.
The Indian unit opened sharply higher at 64.80 as against Wednesday's closing level of 65.12.
Forex dealers said increased selling of the American currency by exporters and banks supported the rupee but a lower opening of the domestic equity market and dollar's rise against other currencies overseas restricted the gains.
Rupee was impacted by renewed dollar demand from banks and importers amid sharp falls in equity market
'Demonetisation will push India onto a higher growth path after a temporary dip.'
The broader NSE Nifty too dived by 101.65 points, or 0.97 per cent, to close at 10,350.15.
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 primary aim for the Rohit Sharma-led India against minnows Hong Kong would be to get their combination right before the big game against Pakistan on Wednesday.
Dollar sales by exporters and firm local equities also supported the local currency.
The rupee ended higher for the second consecutive week.
The rupee is currently hovering around Rs 65/USD at 2-year lows.
Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiments
Now candidates can appear for NEET any number of times.
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
The price reduction will be effective midnight tonight, announced Indian Oil Corp
The RBI fixed the reference rate for the dollar at 64.1505 and for the euro at 72.2720.
Increased demand for the dollar from importers affected the value of the rupee
Weakness in the dollar against some currencies supported the rupee.
For the first time in India, Swiss Learning, an educational body managed by the Heads of Swiss Educational Institutes, has brought representatives from various schools from the country to meet stakeholders, Indian schools and parents of potential students.
Foreign investors have bought nearly $5 billion worth of debt so far in 2014.
The rupee has dropped by 21 paise or 0.32 per cent in the last two sessions.
Upstream firms have a tremendous financial pressure due to selling crude at subsidised rates to oil marketing firms.
Forex dealers said dollar's weakness against other currencies overseas supported the rupee.
The rupee on Tuesday weakened by 15 paise to close at 63.30 against the US currency
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.
Fag-end selling of dollars by banks and exporters
The rupee was largely rangebound for most of the trading day in the absence of any major cues ahead of the Reserve Bank of India's rate-setting meeting next week.
Fresh selling of dollars by banks and exporters on the back of good foreign capital inflows helped the rupee
The rupee had firmed up 16 paise to close at 67.52 on Thursday.
According to the global financial services major, the Consumer Price Index based inflation is peaking off and is expected to be around 7.5-8 per cent in September.
The domestic currency has gained 9 paise or 0.13 per cent in two days.
