The rupee gained 38 paise to close at 81.30 against the US dollar on Thursday, tracking the overall weakness in the American currency.
However, a muted trend in domestic equities and sustained foreign fund outflows capped the gains in the rupee, traders said. At the interbank foreign exchange market, the local unit opened strong at 81.54, but lost ground to quote an intraday low of 81.74 against the greenback. It finally ended at 81.30, registering a rise of 38 paise over its previous close.
On Wednesday, the rupee settled at 81.68 against the US dollar. "Rupee consolidated in a narrow range, and volatility remained low ahead of CPI numbers from India and US," said Forex & Bullion Analyst.