Starting the New Year on a steady note, the rupee recovered from initial losses against the US dollar to close at 66.14 on fresh selling of the American currency by banks and exporters on fresh foreign capital inflows into equity market.
The rupee resumed lower at 66.20 as against overnight closing level of 66.15 at the Interbank Foreign Exchange (forex) market and dropped further to 66.26 on initial dollar demand from banks and importers.
However, it recovered from initial losses to 66.13 before finishing at 66.14, showing a mere gain of one paise or 0.02 per cent.
The rupee gained 25 paise, or 0.38 per cent, in two days.
The domestic currency moved in a range of 66.13 and 66.26 during the day.
Globally, the US dollar ended higher against its major rivals yesterday amid lacklustre trade due to holiday season.
Foreign portfolio investors (FPIs) pumped in $ 166.53 million into equity market yesterday, as per SEBI data.
Meanwhile, the benchmark BSE Sensex moved up further by 43.36 points, or 0.17 per cent, to end at 26,160.90.