The rupee touched a one-month intra day high of 61.31 on Friday, only to surrender the gains and end one paisa lower at 61.54 against the dollar amid weak local equities.
It was the third successive day of consolidation for the rupee around the 61.53 level against the dollar. However, the local currency gained for the second straight week, adding 36 paise since last Friday.
At the interbank foreign exchange market, the rupee opened at 61.50 a dollar from the previous close of 61.53 and climbed to a high of 61.3175 on dollar sales by exporters and an overnight fall in the US currency in the New York market.
Continued foreign fund inflows into local equities also supported the local currency in the initial stages.
However, a steep fall in local stocks on selling in IT shares and a strengthening US currency overseas pulled the rupee down to a low of 61.5775 before settling at 61.54, down by a mere one paisa.