The domestic bourses too enjoyed a healthy weekend run.
The outcome of the latest FOMC meeting minutes and the release of better-than-expected US ISM non-manufacturing PMI numbers did little to influence the home currency even as investors braced for a potential interest rate hikes near-term.
Though, the rupee briefly slipped below 69 levels in mid-morning deals but managed to recoup losses on apparent intervention by the Reserve Bank, coupled with greenback selling by exporters.
The Indian rupee hit a record closing low of 68.95 on Thursday following a panic demand for the US dollar coupled with savage capital flight worries.
Meanwhile, fears over a slowdown in the country's economy in the midst of surging international crude oil prices and widening current account deficits predominantly kept the forex sentiment highly nervous.
Meanwhile, the latest FOMC June meeting minutes showed that policy makers remain wary over intensifying trade disputes but were still on track for gradual monetary policy tightening cycle.
Worrying development on escalation of trade conflict between the world's two biggest economic powers with the US President's latest salvo were largely weighed on the currency and financial markets worldwide with investors on edge awaiting the next developments.
The response among major currencies, however, was fairly limited.
The Chinese government retaliated immediately against US President Donald Trump's USD 34 billion tariff package with a simultaneous set of counter measures and accused Washington of starting "the largest trade war in history".
At the Interbank Foreign Exchange (forex) market, the local currency resumed higher at 68.88 from overnight close of 68.95 on fresh bouts of dollar selling by banks.
It gained further ground to hit a session high of 68.81 before retreating sharply.
After falling to an intra-day low of 69.04, its lowest since June 28, the local unit gradually bounced back towards the fag-end trade to settle at 68.87, revealing a modest gain of 8 paise, or 0.12 per cent.
However, for the week, rupee depreciated further by a sharp 41 paise against the US dollar.
On the energy front, crude prices slipped below the USD 77 a barrel, under pressure from higher Saudi production and trade tensions between the United States and China, though oil supply disruptions lent support.
Top exporter Saudi Arabia told OPEC it raised oil output by almost 500,000 barrels per day last month, a sign Riyadh wants to make up for shortages elsewhere and dampen prices.
Brent crude, the global benchmark, was down over 1 per cent at USD 76.71 a barrel in Asian trade.
The RBI, meanwhile, fixed the reference rate for the dollar at 68.7545 and for the euro at 80.4771.
The domestic bond market also witnessed a recovery trend and the 10-year benchmark yield dropped to 7.87 per cent from 7.90 per cent.
Globally, the dollar weakened as US tariffs on Chinese imports took effect, but a muted reaction in currency markets suggested the escalation had largely been priced in by investors focusing on a US jobs report due later in the day.
The dollar index, which measures the greenback's value against basket of six major currencies, was down at 93.84.
In the cross currency trade, the rupee regained some lost ground against the pound sterling to finish at 91.13 per pound from 91.39 and also recouped against the Japanese yen to end at 62.27 per 100 yens as compared to 62.33 earlier.
It, however, remained under pressure against the euro to close at 80.69 from 80.64.
Elsewhere, the euro rallied to multi-week highs against the greenback, lifted by strong German industrial orders and signs Washington had softened its trade rhetoric towards European Union automakers.
Sterling is trading little changed against the US dollar ahead of the key US non-farm payroll report.
In forward market today, premium for continued to drift owing to consistent receiving from exporters.
In forward market today, the benchmark six-month forward premium payable in November declined to 116.50-118.50 paise from 120-122 paise and the far-forward May 2019 contract moved down to 265-267 paise from 268-270 paise.