Reuters Market Eye - The rupee is trading at 62.55/56 versus its previous close of 62.23/24 tracking loses in the domestic share market after the Reserve Bank of India unexpectedly raised its key lending rate by 25 basis points on Friday.
The Nifty extends losses to more than 2 percent, lead by weakness in banking shares.
Traders say some dollar selling by foreign banks pulled the rupee off the day's low of 62.60. The USD/INR pair is seen holding in a 62.30 to 62.80 range during the rest of the session.
(Reporting by Swati Bhat)