The rupee is trading at 59.80/81 versus its close of 59.73/74 as the Reserve Bank of India steps up dollar purchases while a fall in the domestic sharemarket also hurts.
Dealers say the RBI has been spotted buying dollars sporadically via state-run banks to prevent the local unit from gaining sharply.
Overseas investors bought Indian shares worth $159.20 million on Thursday, provisional exchange data shows. However, the BSE Sensex currently trading down 0.6 percent.
The rupee is expected to hold in a range of 59.50 to 59.90 during the rest of the session. Most other Asian currencies, however, trading stronger compared to the dollar.
(Reporting by Swati Bhat)
