The rupee pared its initial gains and settled for the day 2 paise lower at 83.22 (provisional) against the US dollar as the support from positive domestic equities was negated by rising crude oil prices.
Forex traders said a positive trend in domestic equities supported the local unit at lower levels and restricted the downside.
At the interbank foreign exchange market, the local unit opened at 83.17 and touched a low level of 83.24 against the greenback.
It finally settled at 83.22 (provisional) against the dollar, registering a loss of 2 paise from its previous close.
On Friday, the rupee settled at 83.20 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10 per cent lower at 104.92.
Forex traders said the rupee rose after the American currency dropped from its elevated levels, following a slower-than-expected US job growth in October.
Global oil price benchmark Brent crude advanced 1.55 per cent to USD 86.21 per barrel.
According to Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, the pair is expected to trade between Rs 82.80 and Rs 83.50 in the near-term with a bearish tilt.
On the domestic equity market front, Sensex climbed 594.91 points or 0.92 per cent to settle at 64,958.69. The Nifty rose 181.15 points or 0.94 per cent to 19,411.75.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth Rs 12.43 crore, according to exchange data.
Meanwhile, India's foreign exchange reserves increased USD 2.579 billion to USD 586.111 billion in the week ended on October 27, the Reserve Bank of India said on Friday.
