On Wednesday, the domestic unit crashed 75 paise, its first loss in last four sessions, to close at 70.18 amid strengthening of the greenback and heavy selling in domestic equities.
On Tuesday, the domestic unit gained 34 paise to settle at 69.43 on increased selling of the greenback by exporters and smart gains in domestic equities.
On Monday, the domestic unit signed off the last trading session of 2018 with 18 paise gains at 69.77 but clocked a 9.23 per cent fall during the year.
Today, USD/INR pair is expected to quote in the range of 70.05 and 70.80, says Gaurang Somaiya, Research Analyst(Currency) at Motilal Oswal Financial Services.
The domestic unit trimmed its early sharp gains to settle 8 paise higher at 70.06 on Wednesday, mainly due to dollar buying by importers in the last hour of trade.
The domestic unit Monday recovered by 4 paise to close at 70.14, aided by weak crude oil prices and the dollar's losses in global markets due to political uncertainty in the US.
Despite losses on Friday, the rupee gained 172 paise or 2.4 per cent on weekly basis amid a slide in crude oil prices which touched $53.26 per barrel.
The currency strengthened further by 69 paise to close at 69.70 on Thursday as the Fed raised the interest rate but lowered its projection for future hikes.
The domestic unit pared early gains but managed to end 5 paise higher at 70.39 Wednesday.
Cheaper oil and a central bank that's boosting the amount of money it's adding to the economy have driven gains in Indian assets this week
The domestic unit on Tuesday rallied by a whopping 112 paise, its best single-day gain in over five years, to settle at 70.44 against the US dollar.
The domestic unit on Monday recovered by 34 paise to close at 71.56 against the US dollar.
According to commerce ministry data, India's trade deficit came down to $15.1 bn in Nov from $17.13 bn in Oct this year
Increased selling of the American currency by exporters and banks and sustained foreign fund inflows also supported the domestic currency
Last week's provisional data from exchanges showed that foreign institutional investors (FIIs) became net sellers, as they off-loaded a total of Rs 20.67 billion worth of shares.
In the equity market, benchmark indices rose for the third straight session Thursday. The S&P BSE Sensex climbed 150.57 points, or 0.42 per cent, to end at 35,929.64.
In the equity market, the frontline indices staged a dramatic recovery on Tuesday after a dismal start post the initial outcome of states election verdict.
The domestic unit, which saw a heavy sell-off by plunging 110 paise in opening trade, staged a mild recovery towards the end of the session but still settled in the negative territory
The domestic unit on Monday tumbled 50 paise to close at 71.32 as nagging worries on global trade war front and uncertain crude prices hurt forex market sentiment.
Rating agency Fitch on Thursday said it expects the rupee to weaken to 75 against the US dollar by the middle of next year due to a widening CAD and tighter global financing conditions.