The rupee on Thursday ended at 61.92, down a mere paisa, against the greenback in thin trade.
At the Interbank Foreign Exchange (Forex) market in Mumbai, the rupee resumed lower at 61.93 as against Wednesday's closing level of 61.91 per dollar. It dropped further to 61.95 per dollar on initial dollar demand from banks and importers on the back of strength in US currency in the overseas market.
However, the rupee recovered from initial losses to 61.8625 on selling of dollars by banks and exporters in view of persistent foreign capital inflows into equity market. It ended at 61.92 per dollar, down one paisa or 0.02%.
It hovered in a range of 61.86 and 61.95 per dollar during the day.
In London, the euro traded around a 2-year low against the dollar Thursday on hopes the European Central Bank would unveil new stimulus measures later in the day.
In New York, the ICE US dollar index rose on Wednesday to its highest level since March 2006 as the dollar rally gained momentum, spurred in part by a strong gauge of service-sector growth in the US economy.
Meanwhile, the Indian benchmark Sensex rose by 120.11 points or 0.42%.