The euro was steady at $1.1198 after shedding 0.2 per cent overnight.
Selling of American currency by exporters and gain in other Asian currencies also supported rupee.
The local currency on Monday fell 11 paise to close at 69.91 against the American currency.
The domestic currency has lost 57 paise in the last three sessions.
PBOC has set its daily fixing for the yuan stronger than 6.9 per dollar for four weeks.
The dollar gained against its major crosses ahead of the important FOMC policy statement.
The single currency accounted for almost 21 per cent of global foreign exchange reserves in 2018.
The reserve had touched a lifetime high of $426.028 billion in April 2018.
The local currency on Thursday slid 16 paise to close at 69.50 against the US dollar.
Against a basket of its rivals, the dollar rose 0.1 per cent to a one-week high of 97.09.
Foreign institutional investors (FIIs) pulled out Rs 1,050.43 crore on a net basis Wednesday
Indian currency has strengthened by 31 paise in the last two sessions.
The local currency opened the day flat at 69.45 against the American currency.
The central bank bought $7.724 billion and sold $2.823 billion in the spot market.
The local currency on Monday closed 19 paise down at 69.65 against the American currency.
Against a basket of six peers, the dollar edged up 0.02 per cent to 96.781.
Gains in domestic equities and foreign fund inflows supported the rupee and capped its losses to some extent.
The local currency, however, opened the day at 69.45 against Friday's close of 69.46.
Against the safe-haven yen, the dollar gained 0.2 per cent to 108.425 yen.
In the previous week, the reserves had risen by USD 1.99 billion to USD 419.99 billion.
“Today, USDINR pair is expected to quote in the range of 69.20 and 69.90,” brokerage firm Motial Oswal Financial Services said.
Against a basket of six peers, the dollar was a shade lower at 97.029
Indian bonds and Forex markets were closed Wednesday on account of Id-Ul-Fitr.
The rupee had settled at 69.26 against the US dollar Tuesday.
The pound had its biggest monthly loss against the euro in two years in May.
Forex traders said a cautious opening in domestic equities weighed on the local unit.
Euro, pound and Australian dollar are trading at multi-year lows.
The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy on Thursday.
The domestic currency opened strong at 69.48 and later rose to the day's high of 69.10 at the interbank forex exchange market.
The rupee is emerging as Asia’s top performer in the past three months.
The rupee Friday had settled at 69.70 to the US dollar.
The yen was steady at 108.23 yen per dollar, paring gains after briefly hitting 108.17.
The rupee Thursday had settled at 69.87 to the US dollar.
Gold reserves remained unchanged at USD 23.021 billion, according to the data.
In the opening trade Friday, the rupee had appreciated by 15 paise to 69.72.
On Thursday, the rupee had settled at 69.87 against the US dollar.
Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service