The Indian rupee rose to a one-month closing high on Monday with sentiment bolstered by the greenback's overseas weakness and a recent pick-up in foreign fund investments.
But sustained dollar purchases by the state-run banks which usually act on behalf of the central bank pushed the rupee down from the day's high, dealers said.
The rupee ended at 45.0400/0500 per dollar, off an early high of 44.97, but still firmer than the previous close of 45.1200/1300. It last closed firmer than this level on May 7, when it finished at 44.6500/6700.
It gained 0.8 percent last week, drawing comfort from data which showed foreign funds invested some $132 million in Indian shares in the five sessions to last Thursday.
The rupee rose past the 45 per dollar mark for the first time since May 13 in early deals, helped by a drop in the greenback against major currencies and a dip in global crude oil prices. Oil is India's biggest import item.
The dollar fell to a two-month low against the euro overseas after last week's US jobs data left doubts over the pace of interest rate hikes in the world's largest economy.
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