Reuters Market Eye - The rupee rises to 53.71/72 from a one-month low of 53.82 earlier in the session. The pair closed at 53.41/42 on Thursday.
State-run banks sell dollars after the steep rise in the pair in early trade.
Traders also cite large dollar flows seen with a private sector bank, which added to the downward pressure on the pair.
Some speculation of potential RBI intervention hit markets, but rumours given little credence by traders.
On the day, USD/INR remains higher on the back of losses in domestic shares and tracking other Asian currencies.
Traders expect a band of 53.40 to 53.90 to hold for the rest of the session.
