The US dollar ended sharply higher against the rupee at 65.10/11 per dollar but the pound sterling finished lower at Rs 87.77/79 per pound.
Showing a smart resilience against heightened global volatility, the rupee clawed back its lost territory to recover from its near-6-month low.
The rupee recovered from initial losses in late morning deals to trade at 65.04, still down by 23 paise against the dollar due to strong demand for the greenback.
Given the lack of considerable space both on the monetary and fiscal front to support economic growth, part of the country's forex reserves can be used to support GDP.
The rupee logged its first gain in three sessions by rising 6 paise to 64.27 against the US currency.
The rupee extended its loss for the second straight day by tumbling 20 paise to nearly two-month low of 64.33 a dollar.
The domestic unit also weakened against the Japanese yen to settle at 57.67 per 100 yens from 57.58 in the previous trade.
The rupee staged a mild recovery by gaining four paise to close at 64.08 a dollar on fresh selling of the American currency by banks and exporters.
The country's forex reserves surged by USD 2.604 bn to reach an all-time high of USD 400.726 bn in the week ended Sept 8.
The rupee snapped its two- session losing streak against the US dollar by recovering four paise to close at 64.
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