The rupee surrendered its early gains to end the session on a flat note at 64.01 against the US dollar today amid the American currency gaining some lost ground against its major rivals overseas.
The domestic currency closed with a marginal 1 paisa gain, helped by a mild dollar selling by exporters and banks.
The rupee also got support from a rebound in domestic equities that witnessed a sustained buying by domestic institutional investors, a forex dealer said.
The trigger point behind early session rise in the rupee was a bumper start for the GST regime which saw tax collections worth Rs 92,283 crore for July from just 64.42 per cent of the total taxpayer base.
The domestic currency today opened higher at 63.97 per dollar against the yesterday's closing of 64.02. It firmed up further to trade at 83.88 during the day.
However, towards the close, it showed some weakness due to increased month-end demand from importers and finally settled with a 1 paisa gain, or 0.01 per cent, at 64.01.
The US dollar today strengthened its position against some major world currencies as traders continued to unwind their short-dollar exposure.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.20 per cent at 92.51.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,459.64 crore yesterday, as per provisional data released by the stock exchanges.
The RBI fixed the reference rate for the dollar at Rs 63.94 and euro at Rs 76.45.
In cross-currency trade, the rupee strengthened against the euro to settle at 76.44 against 77.10/12 yesterday and also firmed up against the Japanese yen to trade at 58.16 from 58.98 per 100 yens.
The home unit also firmed up against the pound sterling at 82.62 as compared to yesterday's 82.91.
In the forward market today, premiums fell as traders sold dollars.
Meanwhile, Indian financial markets witnessed a rebound, tracking global rally, lifting the benchmark indices.
The benchmark BSE Sensex zoomed 258.07 points, or 0.82 per cent, to end at 31,646.46 while the broader Nifty soared 88.35 points, or 0.90 per cent, to close at 9,884.40.
A rebound at other Asian markets as investors shrugged off geopolitical tensions a day after North Korea fired a missile that flew over northern Japan also influenced trading sentiments here, traders said.
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