On Monday, the rupee rose by 10 paise to settle at 82.72 (provisional) versus the US dollar, as the American currency fell from its highs.
According to forex traders, a sluggish trend in local stocks and foreign money outflows impacted investor morale and limited the appreciating bias.
The local currency began at 82.69 against the US dollar on the interbank foreign exchange market and eventually finished at 82.72 (provisional) against the greenback, up 10 paisas from its previous close of 82.82.
Against the dollar, the rupee reached a high of 82.62 and a low of 82.74 during the trading day.
The dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.04 percent to 103.90.
Brent crude futures rose 1.05 percent to $83.99 a barrel, the global oil benchmark.
The 30-share BSE Sensex slid 311.03 points, or 0.51 percent, to close at 60,691.54, while the wider NSE Nifty fell 99.60 points, or 0.56 percent, to 17,844.60.
According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital market on Friday, offloading shares worth 624.61 crore.
