Reuters Market Eye - The rupee gains at 64.38/40 versus 64.55/56 last close. It has traded in a 64.28-64.75 band. Pair hit a record high of 65.56 on Thursday.
Dealer says state-run banks seen on offer side.
Local shares extend gains, up 1 percent.
Finance Minister P. Chidambaram says rupee undervalued; RBI chief defends liquidity tightening steps.
RBI chief Subbarao says cash tightening steps to stay till rupee stabilises.
Pair may further ease to around 64.20 levels, says dealer.
