The rupee hit 65.47 at 1102 hours compared to yesterday's closing level of 65.42 at the forex market.
The rupee opened a tad higher at 64.95 per dollar as against yesterday's closing level of 64.96 per dollar at the interbank forex market.
According to Bank of America Merrill Lynch (BofAML), the Reserve Bank is expected to follow an "asymmetrical" policy response to the US dollar, wherein it will allow some depreciation in the rupee and will recoup forex reserves at every opportunity that the greenback depreciates.
Besides reviving credit growth after a period of weakness post demonetisation, the recap plan will help banks wind down their Non Performing Assets (NPAs) or bad loans and take up fresh credit, which should help boost a private capex recovery in India, the report noted.
Earlier, the rupee opened lower by 7 paise at 65.14 per dollar as against yesterday's closing level of 65.07 per dollar at the Interbank Forex Market (FOREX).
The rupee opened higher by 4 paise at 64.98 per dollar as against yesterday's closing level of 65.02 per dollar at the Interbank Forex Market (FOREX).
The rupee resumed lower at 65.08 per dollar as against last closing level of 65.04 at the Interbank Forex Market.
Japanese Prime Minister Shinzo Abe's ruling coalition secured a two-thirds "super majority" after winning 312 out of 465 seats available at Sunday's election, Reuters said, citing local media. Abe's solid win at the polls points to a continuation of fiscal and hyper-easy monetary policies under his Abenomics program.
The rupee opened higher by 7 paise at 64.95 as against yesterday's level of 65.02 at the interbank forex market (Forex) market.
The rupee resumed marginally lower by 5 paise at 64.79 per dollar as against yesterday's closing level of 64.74 at the Interbank Forex Market (Forex) market.
The rupee resumed higher by 18 paise at 64.75 per dollar as against last Friday's closing level of 64.93 at the Interbank Forex Market (Forex) market.
Spot gold was down 0.1 percent at $1,269.50 an ounce by 0101 GMT, after earlier touching its lowest since mid- August at $1,268.60.
Spot gold was nearly unchanged at $1,286.86 per ounce at 0044 GMT, on track for a monthly drop of about 2.7 percent. That would mark its largest monthly decline so far in 2017 and the first such fall in three months.
Overseas, the US dollar traded near a one-month high against a basket of currencies in early Asian trade, underpinned by hopes that US President Donald Trump's administration may be making progress on fiscal reforms.
The rupee resumed higher at 65.35 as against yesterday's closing level of 65.45 at the interbank foreign exchange (forex) market here.
The rupee was at 65.3275 to the dollar after falling to 65.3550, its lowest since March 24, on corporate dollar purchases and dollar outflows from equity markets, said dealers. The Indian currency had ended at 65.12 on Monday.
Spot gold fell 0.1 percent to $1,308.90 per ounce at 0038 GMT. In the previous session, it rose over 1 percent to register its biggest intra-day percentage gain since Sept. 7.
The rupee on Monday slid past the 65 mark for the second session in a row and ended at 65.12 to the dollar, 0.5 percent weaker than its previous close, as local equity markets fell for the fifth consecutive session.
The rupee resumed lower at 64.95 per dollar as against yesterday's closing level of 64.81 per dollar at the Interbank Foreign Exchange (Forex) Market. Later, it fell sharply on heavy dollar demand to 65.16 before paring losses to quote 65.04 at 10.20 hrs.
The state attracted more than half of the total foreign direct investment (FDI) in the country last fiscal, Fadnavis said at an industry event.
The rupee resumed marginally lower at 64.14 per dollar against Thursday's closing level of 64.12 per dollar at the interbank foreign exchange market. The domestic currency hovered in a range of 64.14 and 64.0850 before quoting at 64.09 per dollar at 1025 hrs.
The rupee resumed sharply lower by 17 paise at 64.17 per dollar against Wednesday's closing level of 64.00 per dollar at the interbank foreign exchange market. The domestic currency hovered in a range of 64.17 and 64.07 before quoting at 64.08 per dollar at 1100 hrs.
Spot gold was unchanged at $1,333.70 per ounce at 0049 GMT, after easing 0.3 percent in the previous session.
At its strongest level on Tuesday, the yuan was changing hands at 6.5151 against the U.S. dollar, pushing gains to more than 6 percent this year, according to Reuters data. The currency's appreciation had quickened its pace in August, marking its best month in 2017.
The dollar was marked down as deep as 109.22 yen at the opening, off a whole yen from late on Friday, but there was no follow-through selling and it was last at 109.84.