Rupee Closes Flat Against Dollar

The Indian rupee pared most of the loss against the US dollar to end Thursday on a muted note.

The Indian unit settled at 87.20 a dollar, unchanged from Tuesday's close, according to Bloomberg data. India's financial markets were closed Wednesday on the occasion of Maha Shivaratri.

The rupee opened 6 paise lower at 87.26 a dollar. Shortly after opening, the domestic currency plummeted 22 paise to the day's low of 87.42 against the greenback.

In the second half of the session, the Indian currency pared most of the loss against the US currency, as the Reserve Bank of India likely sold dollars to arrest runaway depreciation, Informist reported.

"Exporters are now getting the opportunity of selling their receivables, while importers who got good opportunities in the last two weeks to buy dollars for their payables may have to wait for some time now for the next opportunity," Anil Bhansali executive director of Finrex Treasury Advisors LLP, said.