The rupee reversed most early losses on Monday helped by a pullback in domestic equities and supported by robust dollar inflows.
At 3:08 p.m. (0938 GMT), the rupee was at 51.55/56 to the dollar after dipping to 51.79 in early trades. It closed at 51.5350/5450 on Friday.
Movement in the euro will now be eyed for cues on risk appetite as fears that S&P's mass euro zone sovereign rating cuts and a Greek debt standoff would worsen Europe's debt crisis, traders said.
Last Friday, Standard & Poor's downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany.
The BSE Sensex was up 0.1% in a choppy session.
