The rupee closed at 48.11 per dollar compared with 48.12 on June 26, according to data compiled by Bloomberg.
Bonds are getting increased support as banks boost holdings in line with deposits, said Arvind Sampath, head of interest-rate trading in Mumbai at Standard Chartered Plc. Prospects of smaller supply, as per the central bank auction calendar, is also encouraging traders. It may advance to as much as 47.50 in a few weeks..
The currency is headed for its first monthly loss since February, with rising oil prices increasing import costs for local refiners. Indias trade deficit widened 24 percent in April to $5 billion from the previous month as fuel prices climbed, government data show.