Reuters Market Eye - The rupee falls on dollar buying by custodial banks ahead of the Reserve Bank of India's review on Tuesday. The rupee falls to 61.64/65, off 61.44 highs, versus last close at 61.46/47.
"Today's spot will be settled on Tuesday which is the policy day. So, we are seeing a spurt in buying interest by foreign banks," says dealer.
The Reserve Bank of India policy on Tuesday likely be the next trigger with any hike in the repo rate to negatively impact the INR.
Foreign funds extend buying in local stocks for a 15th session, being provisional buyers of $161.5 million on Thursday, exchange data showed.
The dollar struggled near a two-year low against the euro in early Asian trade on Friday, as strengthened expectations the U.S. Federal Reserve will maintain its asset purchases through early next year undermined the greenback.
A Reuters poll shows that investors raise long positions in Asia FX.
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(Reporting by Subhadip Sircar)