The rupee retreated from its day’s high of 65.28 to close flat against the US currency due to fag-end demand for the greenback amid ballooning trade deficit of the country.

Sustained unwinding by foreign portfolio investors and lacklustre stocks amid geopolitical disturbances largely dampened the forex market sentiment.

Some caution adopted by currency traders ahead of the import-export trade data also weighed on the trading front.

The home currency had lost 48 paise in the last two trading sessions to hit a one-month low due to strong dollar demand.

The local unit opened on a firm footing at 65.33 from previous close of 65.42 at the Interbank Foreign Exchange (forex) market on bouts of dollar selling and firmed up further to hit an intra-day high of 65.28 in mid-morning deals.

It then swiftly lost upside momentum and pared initial strong gains to touch a low of 65.54 on bouts of dollar demand and also dragged down by losses in local stocks.

However, staging a smart rebound toward the fag-end trade, the rupee managed to end flat at 65.42.

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