On Wednesday, the domestic currency rebounded from a six-month low to end at 71.27, up 13 paise.
The rupee's fall, though, was the sharpest in the region, followed by the Indonesian rupiyah, which lost 0.52 per cent
The government and RBI should address overvaluation
On Friday, it had dived 54 paise to close at an over six-week low of 69.60 as soaring crude oil prices and a fresh flare up in US-China trade tensions weighed on emerging market currencies.
A possible US sanction on India, if it goes ahead with buying Russian air defence system, also weighed on the sentiments
The record rally in domestic equities too helped the rupee
The RBI, meanwhile, fixed the reference rate for the dollar at 63.7375
The domestic unit on Friday marched higher for the seventh straight session to close at 70.92, up 22 paise.
The domestic unit on Monday recovered from day's low levels to close flat at 70.94 helped by foreign fund inflows into equities and lower global crude oil prices.
The domestic unit on Tuesday weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices.
The domestic unit on Wednesday dipped three paise to close at 71.04 amid rising demand for the greenback vis-a-vis other currencies overseas, even as crude oil prices eased.
The domestic unit on Thursday strengthened by 16 paise to close at 70.88.
The domestic unit on Friday spurted by 32 paise to close at a nearly two-month high of 70.56.
The domestic unit on Tuesday dropped 20 paise to close at 71.07 as heavy selling in domestic equities, unabated foreign fund outflows kept investors edgy.
The domestic unit on Monday depreciated by 14 paise to close at 71.02 as profit booking in domestic equities and unabated foreign fund outflows kept investors edgy.
The domestic unit on Wednesday pared most of its initial losses and settled the day marginally down by 5 paise to 71.07.
The domestic currency on Wednesday recovered from initial losses to settle 11 paise higher at 71.43.
The domestic currency on Friday closed almost flat at 71.14 per US dollar amid hardening crude oil prices and lacklustre global cues.
Extreme caution continued to grip forex market sentiment
The US Federal Reserve is expected to hike rates on Wednesday and the dollar has weakened marginally