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.
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.
The home currency has now appreciated by 24 paise in the recent leg of rally despite heavy capital outflows.
Forex market sentiment worldwide wobbled under renewed geopolitical risks amid concerns that North Korea may be preparing another missile test.
The worst nightmare of any central bank appears to be unfolding now. After the last policy, none of the data points seems to have lend incremental comfort.
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.
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.
According to the global financial services major, it has been among the better performing currencies in the emerging markets and has appreciated 6 per cent so far this year, but there are few triggers left for a sharp rally of the rupee from its current level.
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.
The US dollar ended higher against the rupee at 63.93/94 per dollar and the pound sterling also turned higher at Rs 84.48/50 at the close.
A rally in local equities supported the rupee sentiment, a dealer said. The rupee resumed higher at 63.93 per dollar at the interbank foreign exchange (Forex) against last closing level of Rs 64.04 per dollar. The domestic unit hovered between 63.93 and 63.87 during morning deals. It was quoted at 63.90 at 1030 hrs.
Authorities worried about the possibility of international rackets getting access to the same source from where India imports materials for currency printing .
The domestic currency has firmed up by close to 5.5 per cent against the dollar since February on the back of a significant portfolio capital inflows of about USD 27.5 billion. Moreover, the Indian currency has appreciated by 3.7 per cent against the Chinese Renminbi since February, resulting in surge in cheaper imports from China.
The rupee has risen more than six per cent this year against the dollar. This is in contrast to six consecutive years of depreciation.