Market participants said cash deals were seen at 128.80 to the US dollar.
In the spot market the rupee was last traded at 128.90 levels on May 10, dealers said.
The Central Bank injected 5.0 billion rupees through an overnight reverse repo auction to money markets at 9.71 percent almost at the 9.75 percent policy rate.
Though rupee injections through outright purchases of Treasury bills can encourage loan demand, overnight injections force banks to curb lending and clear cash shortages.
In money market gilt-backed overnight repos were quoted at 9.65/70 percent, and call money was quoted at 10.55/60 percent.
In equity markets the Colombo All Share Index topped 6.000 points in intra-day trading and slipped back amid profit taking, brokers said.