"The central bank is suspected to have been buying dollars in recent sessions to shore up its foreign exchange reserves," said Subramaniam Sharma, director at Greenback Forex Services.
Most other Asian currencies like yuan, peso and baht are trading weaker compared with the dollar.
Local shares will be watched during the day for cues on foreign fund flows, which have been a key factor hurting the pair in recent sessions.
Indian shares retreated from a record-setting rally and as losses accelerated, with importers rushing in to buy dollars.
Caution is also seen prevailing ahead of U.S. jobs data due later in the day.