The rupee remained volatile in trade, after an initial fall in opening trade, the currency gained ground on dollar buying.
The currency was last seen trading at 71.14 against the US dollar, a gain of 6 paise over Friday's closing of 71.20. The rupee began with a loss of nearly nine paise in initial trade at 71.29.
It is likely that the RBI may have intervened in the currency market to prevent a further fall. The rupee has been falling over the last few weeks, following a weakish set of economic data.
This is likely to hit imports and is already seeing a surge in retail fuel prices.
India's currency reserves are more than adequate to defend a sharp fall in the rupee.