The rupee ended almost flat at 62.23 against the American currency on the back of steady dollar demand from oil importers.
The Indian unit had closed at 62.22 on Tuesday. The currency markets remained closed on Wednesday on account of a bank holiday.
The rupee fell to 62.44 in intraday trade before recovering due to dollar selling by foreign banks.
The dollar index, measured against a basket of major currencies, was trading up 0.17 per cent after the minutes from the US Federal Reserve meeting showed that it would continue the tapering pace of its stimulus at the rate of $10 billion per month.
Most analysts and treasury experts see the rupee trading in the 61-63 band for the next few weeks in the absence of major triggers in the domestic economy.
Call rates lower; bond yields up a tad
The inter-bank call money rate, the rate at which banks borrow money from each other to meet short-term requirements, closed sharply lower at 6.9 per cent from the previous close of 9 per cent. Yields on the 10-year 8.83 per cent Government security, maturing in 2023, closed a tad higher at 8.79 per cent from the previous close of 8.76 per cent. Bond prices fell to ₹100.25 from Tuesday’s close of ₹100.38. Bond prices and yields move in opposite directions.