The rupee was trading a tad up at 64.31 on mild dollar selling by banks and exporters.
However, dollar’s gains against its rivals overseas and a weak domestic equity market weakened the rupee sentiment.
The domestic unit opened down by 5 paise at 64.38 at the Interbank Forex market today. It hovered in a range of 64.42 and 64.30 before quoting at 64.31, up 2 paise at 4.20 pm local time.
Yesterday, the rupee had ended 10 paise up at nearly three-week high of 64.33 against the dollar after the Reserve Bank lowered its inflation forecast while keeping the policy rates unchanged.
Meanwhile, the benchmark BSE index closed down 57.92 points or 0.19 per cent at 31,213.36.
The euro steadied near six-month highs on Thursday ahead of a European Central Bank policy announcement while sterling set a two-week high as markets priced in a victory for Britain's Conservative Party in national elections.
The euro has risen 10 per cent against the dollar in the past five months, partly due to the greenback's weakness but also on the view that rising inflation would prompt the ECB to raise interest rates in early 2018.