The rupee managed to recover modest ground against the dollar on the money market on Friday in the process of trading, dealers said. In line with the open market, the rupee managed to gain eight paisas in relation to the dollar for buying and selling at Rs 110.42 and Rs 110.45 respectively, they said.
The dollar index against a basket of six major currencies was unchanged at 92.602 after slipping 0.4 percent overnight to 92.573, its lowest since Nov. 27.
The index was on track to lose 0.5 percent this month.
Shin Kadota, senior strategist at Barclays in Tokyo, said rebalancing of positions by market participants signaled broad selling of the dollar, particularly the yen, towards the year's end.
The dollar index will likely end the year down more than 9 percent, its worst showing since 2003, and a Reuters poll showed it is expected to lose a bit more ground against other major currencies next year.
The dollar sagged in 2017 although the US economy expanded, the Federal Reserve tightened monetary policy and the United States enacted a major overhaul of its tax code.
The dollar was trading against the Indian rupee at Rs 63.97, the greenback was at 4.055 in relation to the Malaysian ringgit and the US currency was at 6.517 in terms of the Chinese yuan.
The rupee, however, lost 50 paisas in terms of the euro for buying and selling at Rs 130.75 and Rs 132.75 respectively, they added.

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Open Bid       Rs.110.50
Open Offer     Rs.110.80
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Bid Rate       Rs.110.42
Offer Rate     Rs.110.45
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