The rupee is off lows on dollar selling from custodian banks and corporates, say dealers. The Indian unit is trading at 61.39/40, off a session low of 61.58, but still below Friday's close of 61.27/28.
Dollar selling by a mid-sized private oil company also keeps USD/INR pair gains in check.
Selling from custodian banks comes as the BSE Sensex is nearly flat on profit-taking after earlier touching its highest intraday level since November 2010, while the broader Nifty is also flat after hitting its highest since May 2013.
Foreign institutional investors (FIIs) bought Indian shares worth 17.52 billion rupees on Friday, marking their biggest single-day buying since September 19 and bringing their total over 11 sessions to 93.10 billion rupees.