Strengthening of the euro against the US dollar overseas also supported the rupee.
Forex dealers said a weak dollar overseas and firm domestic equities also helped the rupee to recover.
Bullish dollar sentiment overseas alongside sluggish domestic equity market predominantly impacted the domestic currency
Forex dealers said fresh demand for the dollar also put pressure on the rupee.
The rupee on Monday closed down by 10 paise at one-week low of 54.62 on sustained dollar demand from importers and capital outflows.
The US dollar bought 99.40 yen in Asian trade, compared with 99.21 in North American trade late on Monday.
Forget Starbucks coming into India. Witness the expansion of Caf Coffee Day, which is set to mushroom across the country.
The rupee had strengthened by eight paise to close at 60.13 a dollar on Thursday, following firm local equities and fresh currency sales by exporters.
The rupee had rose by a staggering 80 paise, its biggest single-day gain in last nine months, to close at 59.39 amid signs of strong fund inflows on Friday.
Overall, net investment by foreign investors stood at Rs 2.58 lakh crore in 2014.
The rupee on Thursday hit an all-time low of 59.93 intra-day, before the Reserve Bank stepped in to help the local currency recover some ground.
Among other major companies, Cox & Kings made a total investment of $39.95 million in four different WOS situated in Hong Kong, Singapore and the UK.
The ministry of corporate affairs (earlier company affairs) is amending the stringent IDR (Indian depository receipts) regulations to make it easier for foreign companies to list here.
Forex dealers said weakness in local equities and a firm dollar overseas against other currencies also weighed on the rupee.
The dollar index was up by 0.10 per cent against a basket of six major global rivals, ahead of a slew of data that could offer more evidence on whether an economic recovery is under way in the US.
Investments through the instrument rose to a six-month high of $27 billion in September.
With real estate -- NRIs's favourite investment vehicle in the past -- unlikely to do well in the near future, there is a strong case for NRIs to shift to equity and debt mutual funds, says Prateek Mehta.
The PE biggie has committed to pumping money into Jio Platforms, Byju's and Reliance Retail so far this year - all marquee names in their respective sectors.
Forex dealers said month-end dollar demand from oil importers and dollar's gain against other currencies overseas, also put pressure on the rupee.
At Forex market, the domestic unit commenced lower at 53.95 a dollar from previous close of 53.81and moved in a restricted range of 53.88 and 54.06 before settling at 53.94, showing a fall of 13 paise, or 0.24 per cent.
Weakening of the US currency overseas and firm local equities also boosted the rupee sentiment.
In 2017, a consortium led by Russian state oil company Rosneft agreed to buy Essar Oil for $12.9 billion in India's biggest foreign acquisition of a homegrown company. Rosneft's buyout of Essar's assets was meant to herald a wave of energy investments in India - over six decades after Esso, Caltex and Shell invested in India's refining sector in the 1950s. But the government has tripped up in its efforts to sell Bharat Petroleum Corporation Ltd (BPCL), formerly Burmah Shell, a blue chip public sector company. Bidders include a couple of global funds and resources firm Vedanta.
In 2014, FIIs have infused a net amount of Rs 1,59,157 crore ( 1.59 trillion) in the debt markets.
Forex dealers said strength in euro against the US dollar overseas and increased capital inflows supported the rupee.
Due to weakness in domestic equities and strong dollar demand, rupee shed its month and a half high against follar.
However, foreign capital inflows into equity market restricted the rupee's fall to some extent.
Kotak Mahindra Bank was the biggest gainer on both the indices, ending nearly 9 per cent higher following reports that Warren Buffett's Berkshire Hathaway Inc was planning to pick up stake in the private sector lender.
The dollar index was up by 0.2 per cent against a basket of six major global currencies.
Snapping a five-day downward march, the BSE benchmark Sensex on Wednesday shot up by 187.97 points to 18,414.45.
The ECB on Thursday cut its main refinancing rate to zero from 0.05 per cent.
The local currency had gained 10 paise to close at 63.51.
The dollar index was up by 0.04 per cent against a basket of six major global rivals.
Chinese firms, with state help, pip India in acquiring oil assets abroad.
Foreign institutional investors sold domestic shares worth USD 8.36 million (Rs 45.41 crore), according to provisional BSE data.
Forex dealers said continued capital inflows and a weak dollar overseas also supported the local currency.
The dollar index was down by 0.03 per cent against a basket of six major rivals as Euro rose against the dollar after the Cyprus reached bailout agreement.
At the Interbank Foreign Exchange market, the local unit commenced weak at 54.52 and immediately touched a low of 54.75 on early hesitancy in domestic equities amid sustained dollar demand from importers.
Bearish domestic equities restricted the rupee rise.
The local currency had lost 16 paise to close at 54.17 on Monday due to fresh dollar demand from importers and some banks.
