The rupee should rise early on Monday as soft oil prices and firm Asian stock markets may attract fresh inflows, a key support for the local unit.
Foreigners have bought Indian shares worth $231 million in August after selling more than $250 million in July, helped by a slump in oil prices from record highs above $147 a barrel.
Asian stocks rose on Monday and the dollar hit a six-month high against the euro as oil briefly slipped below $115 and a view that the U.S. dollar's long-term decline is nearing an end gained ground.
The partially convertible rupee ended at 42.065/075 on Friday, a shade stronger than Thursday's finish of 42.075/080.