On Friday, the rupee had ended higher by 48 paise at 69.72 against the US dollar in line with smart gains in domestic equities and uptrend in other emerging market currencies.
The domestic unit opened with strength at Rs 70.05 at the Interbank Foreign Exchange and advanced further to 69.87 against the US dollar.
The US Federal Reserve's policy decision is expected on December 19 and market is expecting another rate hike, traders said.
On Friday, the rupee fell by 22 paise against the dollar to close at 71.90.
On Thursday the rupee appreciated by 33 paise to 71.68 per US dollar.
On Wednesday the rupee had declined by 16 paise to 72.01 per US dollar
Traders said a lower opening in domestic equity market, rising crude prices and foreign fund outflows put additional pressure on the local unit.
The rupee came under pressure following heavy selling in domestic equities amid foreign fund outflows.
Crude oil prices surged over 1.07 per cent to USD 62.35 per barrel in global markets.
The rupee opened lower at 69.87 against the dollar then dropped further to quote at 70.08, down 50 paise over its previous close.
The Pakistani currency shed 10 rupees in inter-bank trading by Friday afternoon after it was traded at 134 rupees on Thursday.
The rupee Monday fell by 18 paise to close at 70.87 against the US dollar.
In the last seven trading sessions, the rupee has gained a healthy 220 paise.
It gained further ground to hit a high of 71.27, following dollar selling by exporters.
Stock markets also rose nearly 1 per cent to scale six-week high levels despite the ongoing RBI board meeting also supported the rupee sentiment.
Foreign funds bought shares worth a net of Rs 844 crore Friday, the provisional data showed.
The rise in the rupee was also supported by dollar-selling by exporters and banks and the US unit's weakness against some currencies overseas, traders said.
The rupee recovered 21 paise to 72.91 against the US dollar early on Tuesday on increased selling by exporters.
The rupee depreciated 34 paise to 72.79 against the US dollar in early trade at the interbank forex market Monday on foreign fund outflows.
The rupee dropped by 40 paise to 74.08 against the US dollar in early trade on Wednesday, amid increased demand of the American currencies from importers and sustained foreign fund outflows.
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