The rupee weakened to 65.08 in the evening trade as the dollar edged up as investors shrugged off a lack of motives to buy it last week and awaited more clarity on the strength of the US economy and pace of future interest rate hikes.

However, a strong domestic equity market curbed the rupee's losses.

Continuing its uptrend, the rupee firmed up by another 7 paise to 64.78 against the US dollar in early trade.

It hovered in a range of 65.08 and 64.76 before quoting at 65.07, down 22 paise at 4.40 pm local time.

On Friday, the rupee had gained 7 paise to close at a fresh 17-month high of 64.85 on bouts of dollar selling from banks and exporters.

Meanwhile, the benchmark BSE index closed up 289.72 points or 0.98 per cent at a record closing high of 29,910.22 on strong foreign fund inflows.

In the overseas market, the dollar index, which measures the greenback against a basket of major currencies, ticked 0.2 per cent higher in morning European trade.

It hit a day's high of 100.53, holding well above its fourth month low of 98.85 hit last week in the wake of US President Donald Trump's failure to get a healthcare reform bill passed in March.