Although the rupee has been helped by continued foreign inflows into equities, which helped the currency gain in each of the previous three sessions, overseas investors have turned sellers in index futures totalling 2.43 billion rupees ($40.4 million) over the five previous sessions until Friday.
The one-month implied volatility in the spot rupee stood at 11.3 percent, not far from 12.2 percent hit on April 28, which was its highest since mid-November.
There was good bidding from state-run banks and oil firms pulling the rupee off highs. 59.90 to 60.60 range will continue to hold with the market swinging mostly to the flows.
The rupee closed at 60.21/22 per dollar compared to 60.16/17 on Friday. The currency rose to as high as 60 to the dollar, its highest since April 9.
In the offshore non-deliverable forwards, the one-month contract was at 60.56 while the three-month was at 61.29.