The common currency slipped slightly overnight to $1.2142 and held there in early Asia trade. The yen was steady at 103.76 per dollar, while the risk-sensitive Australian and New Zealand dollars softened marginally.
It finally finished at 72.94, higher by 3 paise over its last close. On Friday, the rupee had settled at 72.97 against the American currency.
The dollar index stood at 90.247, flat on the day but off last week's low of 90.043 set on Thursday.
A weaker rupee aids local exporters as they receive more rupees per unit of global dollar payments. New Delhi is pushing for home-grown manufacturing to boost export earnings, and the purchases would help stem the potential rise in the local currency.
In the reporting week, foreign currency assets (FCA) -- a major component of the overall reserves -- decreased by $284 million to $541.507 billion, weekly data by the Reserve Bank of India (RBI) showed.
The domestic unit finally ended 2 paise higher at 72.97 against the US dollar, marking its fourth straight session of gains.
Index touches all-time high on Wall St cues, but fails to close above milestone as investors cut bullish bets
The rupee opened higher at 72.96 and touched the day's high of 72.93 against the greenback before shedding some gains towards the fag-end of the session.
The Reserve Bank of India signaled recently it won’t relent on dollar purchases that pushed the currency to the bottom of Asia’s currency rankings in 2020.
It finally closed at 73.05, higher by 12 paise over its last close.
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