The rupee erased some of its initial gains to end 2 paise higher at 72.53 against the US dollar on Thursday, tracking subdued equity market sentiment and a stronger dollar overseas.
Persistent foreign fund inflows and lower crude prices supported the domestic unit, forex traders said.
At the interbank forex market, the local unit opened strong at 72.48 against the greenback, but failed to hold on to gains following a massive selloff in the domestic equity markets.
During the session, it witnessed an intra-day high of 72.43 and a low of 72.60. It finally settled 2 paise higher at 72.53 against the American currency.
On Wednesday, the rupee had settled at 72.55 against the dollar