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.
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).
Forward dollar premiums dropped further on persistent receipts by exporters.
The benchmark six-month forward dollar premium payable in June dipped to 224-226 paise from 229-231 paise previously.
Far-forward contracts maturing in December tumbled to 457-1/2 to 459-1/2 paise from 463-1/2 to 465-1/2 paise.
The RBI fixed the reference rate for the dollar at 61.5325 and for the euro at 83.8395.
The rupee rose to 100.48 against the pound from 101.11 and improved to 83.72 per euro from 83.85. It ended at 58.73 per 100 Japanese yen from 59.03.