The rupee is trading at 55.89/90 per dollar, above its previous low of 56.08/09, on dollar-selling from two large foreign banks, on what was seen as custodian flows, as well as from a mid-sized infrastructure company.
Traders said a sharp fall in global oil prices also prompted oil firms to stay out of the market.
If oil prices stay around the current levels, it would reduce dollar demand by oil firms by nearly $2-$3 billion per month, dealers estimate.
Brent crude fell further on Friday, staying below $102 per barrel.
