The rupee is still up at 55.3550/3650 from its close of 55.75/76 on Friday, though falls from its highest in nearly a week.
USD/INR bounces from session low of 55.23 supported by oil-related bids, though traders do not expect sustained buying given refiners' dollar needs wane at the start of each month.
A Hong Kong-based foreign bank was seen selling USD heavily in early session, dealers said, though source of flows uncertain.
USD/INR has fallen nearly 1 pct for the session and is on its way to clock its biggest daily loss in over a week.
Foreign bank dealer tips 55.20-55.55 band in session.