Forex dealers said initially the rupee sentiment was helped by a drop in March retail inflation as it gave room for RBI to cut rates on its May 3 monetary policy review.
However, weakness in local equities and a stronger dollar overseas hit the local currency later in the day.
The rupee commenced strong at 54.41 against the dollar from its previous close of 54.51 at the Interbank Foreign Exchange (Forex) market.
Later, it moved in a range of 54.34-54.62 before settling at 54.52, a loss of mere one paisa from its previous close.
Meanwhile, the BSE benchmark Sensex today slumped by nearly 300 points at 18,242.56 as software major Infosys crashed by over 21 per cent due to disappointing results and a weak revenue forecast for this fiscal ignoring fall in retail inflation and better-than-expected
Rupee up 25 paise Vs USD to end at 54.56
Re down 2 paise Vs dollar at 54.58
Retail inflation declines to 10.39% in March
Re snaps 2-day losing string, up 6 paise
Rupee up 7 paise at 54.29 Vs USD