The 10-year government bond yield was down 0.18 per cent at 6.52 per cent.
India reported a dismal factory output data, which also hit traders confidence in rupee.
On the domestic front, market participants will be keeping an eye on the inflation number and pick up the number could further weigh on the rupee, Motilal Oswal said in a report.
In August, it sold USD 4.072 billion on net basis in the spot market.
Versus a basket of currencies, the global dollar index rose 0.1 per cent.
Investors also played their bets cautiously in view of India's rating outlook cut by Moody's investors Services last week.
Moves were slight as traders kept a wary eye for further news on the US-China trade war.
FIIs turned bullish from late October and continues to be net buyers in November.
Moody's has changed the outlook to 'negative' from 'stable', saying there was increasing risks that economic growth will remain materially lower than the past.
The yuan was set for its fifth straight weekly gain, the longest winning streak since February.
It affirmed the Baa2 foreign-currency and local-currency long-term issuer ratings for India.
The prospects of an end to the trade war left the yen nursing losses against major currencies.
Speculators have cut short bets on the rupee to the lowest since mid-August, a poll showed.
Prices of most vegetables climbed during the month as rains delayed harvests and disrupted supplies. That was despite a ban on onion exports. Overall food prices - the biggest chunk of the consumer price basket - also rose in October. Nearly 85% of respondents forecast retail inflation, due on Nov. 12, to breach the RBI's medium-term target.
The rupee settled at 70.97, unchanged from its previous close.
The local currency on Wednesday closed 28 paise down at 70.97 against the greenback.
Robust foreign fund inflows and easing crude oil prices restricted the fall for the domestic unit.
In the last few weeks, rupee continued to consolidate in a narrow range of 70.70-71.30.
The dollar index against major currencies was little changed at 97.936 in early Asian trade.
Brent crude futures, the global oil benchmark, surged by 1.17 per cent higher at USD 62.86 per barrel.
The local currency on Monday advanced 4 paise to close at a five-week high against the greenback.
The Swiss franc changed hands at 0.9928 to the dollar following its 0.5 per cent fall the previous day.
The local currency appreciated by 11 paise to close at 70.81 against the US dollar on Friday.
The euro was last trading down 0.15 per cent on the day at $1.1150 .
Strengthening crude oil prices, however, capped the gains for the domestic unit.
The local currency on Thursday closed almost flat at 70.92 against the greenback.
"If the jobs data prints to the weak side, that would put even more pressure on the dollar."
Rising crude prices and month-end dollar demand from oil importers weighed on the rupee sentiment.
The dollar index dipped 0.32 per cent to 97.32 against a basket of six major currencies.
The euro last changed hands at $1.1167, while the greenback last traded at 108.66 yen.
The rupee loss was somewhat capped by unabated foreign fund inflows, domestic stocks rally and lower crude oil prices.
USDINR pair is expected to quote in the range of 70.70 and 71.30.
Against the yen, the greenback was also little moved at 108.83 yen.
Stronger dollar against key global currencies kept the rupee movement under check through the session.
On Friday, the rupee had appreciated by 12 paise to settle at 70.90 against the US dollar.
The dollar was steady against the euro at $1.1096 and flat against a basket of currencies at 97.755.
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