The rupee held steady on Monday as the dollar eased in a cautious open to the week, even as financial conditions continue to tighten to reflect global recession fears and weigh on risk assets.
Bloomberg showed the rupee was last changing hands at 82.3525 per dollar compared to Friday's close of 82.36.
The domestic currency is trading in the 82.3188 to 82.3925 range, well off its record low of 82.6950 against the greenback.
But risks remain, and the Reserve Bank of India is expected to step in and stabilise the rupee from any wild gyrations in currency markets, especially after the latest minutes showed a dovish tone, with the Monetary Policy Committee (MPC)'s future rate hike decisions dependent on data.
For now, though, the dollar's weakness versus its peers in the Group of 10 gave frantic currency markets a little reprieve.
"The range for the rupee is 82.00 to 82.60 (per dollar) for today as the RBI may continue its protection of certain levels. Japan may intervene to protect the yen from further fall, but overall $ strength continues, said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.
Traders continued to look for potential support measures to help the yen, which is close to a 32-year low and approaching the crucial 150 level versus the dollar.
The pound increased on the assumption that the UK might roll back more of its unfunded tax cuts.