The Indian rupee on Thursday wiped out early losses and ended just one paise down at 55.63 against the US currency on alternate bouts of buying and selling amid a fag-end recovery in local stock market.
At Interbank Foreign Exchange (Forex) market, the rupee commenced weak at 55.72 a dollar from previous close of 55.62. It immediately touched a low of 55.75 on some weakness in local equities amid month-end dollar demand from importers.
However, with Sensex rebounding in the last 30 minutes of trade on the back of robust capital inflows, the rupee gained and touched a high of 55.58.
With dollar gaining some strength after a short-term weakness, the rupee, however, closed at 55.63 - a fall of one paisa over Wednesday's closing value.
Since the lower GDP figures are already anticipated by the market players, the April-June GDP figure which is set to be released on Friday could make rupee to break its narrow range, said Abhishek Goenka, Founder & CEO, India Forex Advisors.
"The rupee traded on strengthening note within a lacklustre narrow range... it, however, shed some of its strength towards the fag end after the sharp dip in EU consumer confidence numbers to a three year low pushed the Euro from its highs," said Pramit Brahmbhatt, CEO, Alpari Financial Services (India).
The dollar index was last trading flat with an upward bias against a basket of six major global currencies a day ahead of the US Federal Reserve Chairman Ben Bernanke's much-awaited speech. New York crude oil was quoting above $95 a barrel in Europe today.
Meanwhile, the Indian stock market benchmark Sensex, which was down by over 123 points in the morning, reversed its losses and closed up by nearly 51 points, cutting straight four sessions of losses.
Foreign Institutional Investors (FIIs) continued their buying spree and picked up shares worth $74.50 million on Wednesda according to Sebi data.