On the other hand, rising crude prices restricted the rupee upmove.
Buying interest from Japanese investors is strong when the dollar dips near 109 yen.
The dollar had climbed to a three-month high of 70.5 against the rupee.
The rupee gained as much as 0.4 per cent to touch a session high of 69.74 against the dollar.
Strong FIIs inflows and higher domestic equity markets also improved sentiments for the rupee.
The Reserve Bank of India shared the figures in half-yearly report on the management of foreign exchange reserves.
The dollar index against a basket of six major currencies stood at 97.947.
In the previous week, the reserves had increased by USD 171.9 million to USD 418.687 billion.
The rupee opened weak at 70.22 at the interbank forex market and then fell further to 70.32.
JP Morgan had already cut its emerging markets risk in FX and sovereign credit to neutral from overweight at the end of March.
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