In the open market, meanwhile, the dollar rose by Rs1.70 and was being traded at Rs178.

On Wednesday last week, the rupee had closed below the 170 level for the first time in over a month in the inter-bank market after a 3.1% gain on the back of Saudi Arabia's support package.

The gain came after the rupee had earlier dropped to its lowest level, closing over the 175 level for the first time on October 26.