The rupee started 7 paise up at 65.10 against the dollar following selling of the American currency by banks and exporters.
The local unit settled at a fresh three-month low of 65.17 in the previous trading session.
Government bonds (G-Secs) also weakened previously on heavy selling pressure from banks and corporates. Interbank call money rates ruled steady as demand from borrowing banks matched supply.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 241.85 crore on March 1, as per provisional data. Domestic institutional investors (DIIs) sold equities worth a net Rs 3.29 crore.
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