The rupee had shed 13 paise to close at 64.04.
Sensex zooms 200 points in Muhurat trading, Nifty regains 7,800.
Sluggish domestic equities and persistent capital outflows largely pressurised the Indian unit
In the broader markets, the BSE Midcap and Smallcap indices were up 0.5% each
The derivatives expiry on Thursday is also expected to add to the volatility.
At the Interbank Foreign Exchange market, the domestic unit commenced higher at 61.80 a dollar from previous close of 61.92.
Profit-booking and selling pressure on below-normal monsoon forecast, marred sentiments, traders said.
Sensex is trading firm; FMCG, real estate going strong.
We still have time for this government to take action.
The dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up by 0.19 per cent at 95.48.
The rupee bounced back from a one-month low to post its first gain in the New Year, rising 10 paise to close at 62.16 against the dollar after the RBI was said to have sold the US currency.
On the gaining side, Hero Moto, SBI, HDFC, HUL and L&T have gained between 1-1.4 per cent.
The 30-share Sensex ended down 208 points at 27,057 and the 50-share Nifty closed 59 points lower at 8,094.
Two-thirds of gold demand in India comes from rural areas where jewellery is a traditional store of wealth.
India's share of 2015 emerging market allocations will be driven by FII perceptions on likely growth and reform.
The 30-share Sensex ended down 71 points at 26,710 and the 50-share Nifty lost 38 points to close at 8,030.
In the global market, the US dollar rose against the basket currencies in early trade as US President Barack Obama called for diplomacy in dealing with alleged chemical weapons attack in Syria but kept open the possibility of military action against the Assad regime.
Valuation-wise, the markets look more attractive now
Fresh selling of dollars by banks and exporters on the back of good foreign capital inflows helped the rupee
In the broader markets, the BSE Midcap and Smallcap indices extended gains and were up over 1% each
The domestic unit had recovered to 68.65 in early trade on Friday as against Thursday's closing of 68.72.
The current situation offers an opportunity for farmers to reinvest in agriculture.
The rupee continued to slide against the pound sterling and finished at 102.64 as against 102.25 previously.
Unwinding of long dollar positions ahead of the US job data backed the rupee sentiment
The 30-share Sensex ended lower by 61 points at 29,122 mark and the 50-share Nifty slipped by 12 points to close at 8,797.
The 30-share Sensex ended up 142 points at 29,462 and the 50-share Nifty gained 26 points to end at 8,895.
The domestic currency had lost 63 paise to close at over four-month low of 61.18 against the dollar in Friday's trade on weakness in global stock markets and a strong US currency overseas.
The Indian currency had appreciated by a whopping 85 paise in three-day surge
The battered rupee gained 225 paise to 66.55 against the dollar today, the most in at least 15 years, after the Reserve Bank of India eased pressure in the currency market by starting a facility for state-run oil refiners to buy foreign exchange.
Gains were led by Tata Motors on robust Q1 earnings and HDFC Group shares.
Sensex plunges 322.39 points to over 1-month closing low of 27,797.01; Nifty tumbles 97.55 points to 8,340.70.
Traders say the outlook for the rupee has improved on the back of a sharp narrowing in the current account deficit after government and central bank emergency measures such as curbing gold imports.
Sectoral index up 10% in past month, as market takes hope from higher order book, revenue and operating margins in September quarter.
Weakness in the greenback overseas against the backdrop of sluggish US macro data outcome helped the home currency move higher
Sensex rises, Nifty holds 8,900; FMCG, Pharma shares lead.
Although there are serious risks facing the US economy in the coming year, there is also a good chance that growth will be substantially stronger than it has been since before the recession began.
Markets have witnessed a gap down opening mirroring losses in the global equities with US markets taking a hit on worries about the health of Chinese economy.
The 30-share Sensex ended up 140 points at 28,262 and the 50-share Nifty was up 37 points at 8,551.
Facebook is appealing the class certifications, which the Menlo Park, California-based company said are "without merit" and conflict with "well-settled" precedent
Sensex rises, Nifty ends at record high; RIL shares rally.