Forex dealers said besides the dollar gaining against other currencies in the global markets on the back of a strong US economy, increased demand for the American unit from importers weighed on the rupee but a higher opening in the domestic equity markets, capped the fall.
The rupee had plunged by 19 paise to close at over 3-week low.
The dollar index was up by a whopping 0.45 per cent against basket of six major global rivals, which also pushed the rupee to log its biggest daily loss since September 15.
Increased demand for the dollar weighed on the local currency.
The domestic currency had last ended at 64.17 per dollar.
The rupee had snapped its 3-day losing streak on Thursday.
The local currency had surged 18 paise to 63.64 in Thursday's trade.
On Monday, the rupee gained 16 paise.
The rupee had closed with a gain of 12 paise on Friday.
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 rupee hovered in a narrow range of 62.20 and 62.28
The local currency dropped to 61.75 before concluding at 61.70, a loss of seven paise from its previous close.
Rupee rises against the dollar for 4th straight session.
On Thursday, the rupee jumped 50 paise to close at 62.67 against the Greenback on persistent selling of dollars by banks and hopes of capital inflows in view of a strong equity market.
The rupee fell back against the pound to 98.72 from overnight close of 98.48 and turned negative to end at 77.44 per euro from Rs 77.37.
The rupee opened steady at 63.30 per dollar at the Interbank Foreign Exchange; but, firmed up to 63.22 before quoting at 63.23 per dollar at 1000 hours.
The rupee had risen for the fifth straight session on Thursday.
A strong dollar overseas and some hesitancy in local stocks, however, limited the rupee rise.
A weak dollar overseas also aided the rupee rise while fresh sell-off by foreign funds in domestic stocks capped the currency's gains, forex dealers said.
The rupee had retreated from three-week high and ended six paise down at 60.67 against the dollar on demand from importers for the US currency in Thursday's trade.
Rupee hits more than two-year low; RBI intervenes
The rupee rallied for the second straight session by gaining 21 paise to end at 66.10 against US dollar.
The rupee on Friday resumed lower at 60.25 a dollar from previous close of 60.19 at the Interbank Foreign Exchange market.
The rupee bounced back by four paise to close at 65.27 per dollar on fresh selling of the American currency by banks.
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.
On Wednesday, the rupee had dropped by 26 paise.
Forex traders said a stronger dollar also dragged the rupee down.
The rupee is trading weak against the dollar in afternoon trade.
The rupee recovered from more-than three months low of 63.15 in early trade on dollar selling by banks.
The US stimulus programme has been credited with fuelling a global equities rally for most of the year.
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 ended five paise lower at 61.92 on Tuesday.
Sustained inflows of foreign funds supported the rupee
At the Interbank Foreign Exchange Market, the rupee resumed lower at 59.72 a dollar from the previous close of 59.67 and declined to a low of 59.88. It bounced back on dollar selling by exporters and some banks, touching a high of 59.30 before settling at 59.35, a rise of 0.54 per cent.
The dollar index was up by 0.43 per cent against a basket of six major currencies as euro dropped against the dollar, after quarterly economic reports from France and Germany missed expectations, said analysts.
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.
Concerns related to capital outflows in the aftermath of the first US interest rate hike in nearly a decade predominantly weighed on the rupee trade.
The Indian rupee on Thursday appreciated by 12 paise to end at 66.71.
The global brokerage firm further said that BoP would be INR-supportive.
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