The rupee recovered from initial losses and settled at the overnight closing level of 62.07 against the dollar on Thursday after a late bout of sales by exporters as the US currency weakened overseas.
Fresh capital inflows after three days of outflows and a late recovery in local equities also helped the rupee.
At the interbank foreign exchange market, the local currency resumed lower at 62.22 a dollar from the previous close of 62.07 and declined to a low of 62.24 as domestic equities declined.
It rebounded to a high of 61.9650 on late dollar selling by exporters before ending at 62.07. Yesterday, it had gained 23 paise to a one—week high.
The benchmark 30—share S&P BSE Sensex fell 16.01 points today. Overseas investors bought a net 27.07 million of shares yesterday, as per Sebi data.
“The rupee recovered and closed flat as the dollar index, which measures the greenback against a basket of six major rivals, traded weak after strengthening for two consecutive days,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). “Now the local investors are eyeing the release of key inflation data next week.”