Forex traders said, the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday.
The dollar traded at 109.00 yen on Tuesday in Asia, close to its lowest in a week.
The Indian unit on Friday had closed at 71.74 against the US dollar.
The Indian rupee on Friday had closed at 71.74 against the US dollar.
The Chinese yuan was a tiny bit firmer at 7.0271 per dollar.
Forex traders said month-end dollar demand from importers and uncertainty over the US-China trade talks also weighed on the domestic currency.
The rupee is the worst performer among emerging market peers in Asia this half.
Weaker-than-expected growth number could continue to keep the rupee under pressure.
Sterling was steady on Friday at $1.2910, while the euro held at $1.1012.
Fresh trade concerns after China said it was ready to take firm counter-measures against the US which passed a law supporting Hong Kong protestors also weighed on the domestic currency.
Re is the worst performer in emerging Asia this quarter and that’s because RBI is mopping up dollar, analysts say.
The local currency on Wednesday closed 15 paise up at 71.35 against the greenback.
In the offshore market, the yuan fell 0.16 per cent to 7.0255 per dollar.
Forex traders said the rupee appreciated for the second straight day on foreign inflows in primary as well as secondary equity market.
This week the focus will be on GDP and fiscal deficit numbers.
The local currency on Tuesday settled 24 paise higher at 71.50 against the greenback.
The euro stood at $1.1023, little changed so far this week.
The rupee gain was further strengthened by weakening of dollar against the key rival currencies.
Authorities are concerned a surge in rupee trading overseas threatens the stability of the currency.
The euro softened to $1.1013, near one-week low of $1.10035 touched on Monday.
Rupee finally settled at 71.74, registering a loss of 3 paise over its previous close.
The rupee is under selling pressure due to escalating public debt and a credit crunch.
The dollar index edged off the one-week high against a basket of currencies.
During the week, gold reserves decreased by USD 200 million to USD 26.709 billion, it said.
On a weekly basis, the Indian currency gained 7 paise.
The Japanese yen - also seen as a safe haven - was flat against the dollar.
“Today, USDINR pair is expected to quote in the range of 71.70 and 72.20.”
Forex traders said the rupee received a leg-up after China said it will strive to reach 'phase one' trade deal with the US.
Investor sentiment towards most Asian currencies soured over the past two weeks.
In the last couple of sessions, rupee consolidated in a narrow range.
The Chinese yuan fell to a three-week low in onshore trade on concern.
Fresh foreign fund inflows and a rally in domestic stocks restricted the fall for the local unit, forex traders said.
The local currency on Tuesday settled 13 paise up at 71.71 against the greenback.
After four days of falling, the dollar was up 0.1 per cent against both the euro and a basket of currencies.
Moves were slight as jaded traders again weighed mixed messages on trade.
Forex traders said the rupee consolidated in a narrow range following lack of cues on the domestic as well as the global front.
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