MUMBAI: The rupee shed gains after hitting its highest in almost a week, last trading at 55.58/59 versus its close of 55.75/76 after earlier hitting a session high of 55.23.
Oil importer bids are driving most of the recovery in the dollar, dealers said.
"Nowadays they don't wait till month-end to buy dollars. They spread their demand all through the month. They are looking for levels," a senior dealer with a private bank said.
The stock markets gained more than 1 percent, stemming further losses in the Indian currency. The euro hit a one-month high against the dollar as traders unwound bearish bets after the stronger-than-expected US jobs data last week.
