At 10:38 a.m. (0508 GMT), the partially convertible rupee was at 44.765/770 per dollar, 0.2 percent weaker than 44.66/67 at close on Friday when it had risen during trade to 44.615, a level not seen since Jan. 4.

"The rupee is lower tracking the weakness in the euro," said a senior foreign exchange dealer with a state-owned bank. "But year-end dollar flows are still trickling in, so we could see the rupee in 44.70-44.80."

The main stock index was trading up 0.6 percent, extending last week's rally and should help the rupee, traders said.

The euro was at $1.4057, down from Friday's close of $1.4074. For more stories see

The index of the dollar against six major currencies was up 0.13 percent at 76.325 points after closing at 76.217 points on Friday.

The one-month onshore forward premium was at 29.50 points, down from previous close of 31.25 points, the three-month premium shed 1 point to 84.50 and the one-year was at 298.00 points from 299.25.

The one-month offshore non-deliverable forward contracts were quoted at 45.04, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 44.7750, with the total volume at about $1.49 billion.