In volatile trade, the Indian rupee on Tuesday touched a fresh one-week high of 55.25 against the dollar but gave up most gains to close flat at 55.64 as exporters sold the American currency in view of strong overseas trends.
The rupee, which closed at 55.65 on Monday, resumed higher at 55.39 a dollar at the Interbank Foreign Exchange (Forex) market.
Thereafter, it touched a high of 55.25 on dollar selling by exporters and initial firmness in local stocks.
The rupee reversed its gains and fell back to the day's low of 55.91, after being hit by heavy dollar demand from importers, mainly oil refiners, on lower oil prices.
It finally closed at 55.64 a dollar after recovering some lost ground.