The rupee falls to 53.815-53.825 after earlier hitting as a session low of 53.88, the lowest since October 22. The pair closed at 53.56-53.57 on Thursday.
Weaker euro spurring gains in the US dollar as traders await Spain's request for a bailout and keep a wary eye on Greece after the country's opposition leader said his party would vote against an austerity package expected to go before parliament this week.
Foreign bank dealer says USD/INR may remain well bid on the back of month-end dollar demand.
Pair will take further cues from RBI's rate decision on Tuesday, with any rate cut likely to feed rupee gains by improving confidence in the economic outlook and potentially sparking foreign flows into stocks.
However, The Economic Times reports being told by two unnamed finance ministry officials the central bank was unlikely to cut key policy rates.
