The Indian unit resumed higher at 66.10 per dollar as against yesterday's close of 66.18 and moved up further to 66.07 on selling of dollars by banks and exporters.
However, it washed out initial gains and dropped to 66.27 per dollar on fag-end dollar demand before closing at 66.19 as against 66.18 yesterday, showing a marginal loss of one paise or 0.02 per cent.
It hovered in the range of 66.07 to 66.27 per dollar during the day.
The dollar index was trading higher by 0.17 per cent against a basket of six currencies in the late afternoon trade. In the overseas market, the US dollar was nearly unchanged against the yen and the euro during Asia trade today as investors refrained from taking strong positions amid a lack of fresh incentives.
The US currency was largely tracking weakness since early this week, as investors adjusted their dollar-long positions. With a lack of fresh trading cues, many investors are factoring in the Federal Reserve's decision to raise short-term rates in December, but remaining skeptical about the pace of monetary tightening thereafter. Meanwhile, the Indian benchmark Sensex moved up by 26.57 points or 0.10 per cent.