The Indian rupee ended weaker for the first time in five sessions on Monday, with dollar buying by oil refiners and gold importers adding to pressure triggered by the greenback's gains overseas on the encouraging US jobs data.
The rupee closed at 46.3375/3475 per dollar, 0.10 percent weaker than Friday's 46.2925/3000 close.
Traders said some dollar selling by state-run banks acting on behalf of the central bank had helped check the rupee's losses.
"There was some gold-related (dollar) buying by a foreign bank and a large state-run commodities trading firm was also active in buying forward dollars," a state-run bank dealer said.
"But the RBI's (Reserve Bank of India's) support ensured the rupee did not weaken past 46.35."
The Indian central bank has been lending support to the rupee in recent months to curb inflationary pressures and cushion the economy from high prices of crude oil, India's biggest import.
Traders said the local currency was likely to remain subdued on Tuesday, with demand for the broadly strengthening dollar and a lack of overnight inflows due to the US Labour Day holiday to keep the rupee boxed in a weak range.
"We should see it (rupee) confined to a 46.30 to 46.38 range," a trader at another state-run bank said.
Rupee premiums on the forward dollars bounced off early lows to end marginally higher as some gold and oil importers stepped up hedging.
The annualised premium on the benchmark six-month dollar closed 4 basis points higher at 1.99 percent.
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