MUMBAI: The rupee settled just 1 paisa higher at 74.87 (provisional) against the US dollar on Thursday amid a muted trend in domestic equities.
Forex traders said foreign fund outflows, strengthening of the greenback and firm crude prices in the international market restricted the appreciation bias in the local currency.
At the interbank forex market, the local unit opened at 74.86 against the greenback, and moved in a range of 74.69 to 74.89 during the session.
It finally ended at 74.87, registering a rise of just 1 paisa over its previous close.
The rupee on Wednesday had surged by 47 paise to close at a nearly two-week high of 74.88 against the American currency.
On the domestic equity market front, the BSE Sensex ended 336.46 points or 0.55 per cent lower at 60,923.50, while the broader NSE Nifty fell 88.50 points or 0.48 per cent to 18,178.10.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.09 per cent to 93.64.
Brent crude futures, the global oil benchmark, fell 1.05 per cent to USD 84.92 per barrel.
Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 1,843.09 crore, as per exchange data.