In dull trade on Thursday, the rupee erased initial losses and closed little changed at 61.53 against the dollar, up one paisa, amid alternating bouts of demand and supply.
The rupee opened weak at 61.65 a dollar from the previous close of 61.54 and declined to a low of 61.71 on early demand for the US currency from importers.
It later recovered and touched a high of 61.51 on capital inflows and weakness in the dollar overseas and ended 61.53, a gain of one paisa.
The benchmark 30-share S&P BSE Sensex closed 24 points lower. Overseas investors bought shares worth a net USD 125.44 million on Wednesday, as per Sebi data.
There were no major cues from overseas as the dollar index was down 0.04 per cent ahead of US jobless claims data later in the day.
“Rupee ended flat, taking cues from local equities which ended near yesterday’s close,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).