Mumbai: The rupee on Friday ended steady at 67.96 against the US dollar amid renewed selling in domestic equities against the backdrop of sustained capital outflows.
Besides, trading sentiment was influenced by investors turning cautious ahead of the advance GDP estimates.
A smart rebound in the US dollar in overseas markets after two-day selling also added some pressure on the domestic currency.
The domestic unit opened firmly higher at 67.85 from Thursday's closing value of 67.96 at the Interbank Foreign Exchange market and strengthened further to 67.80 following fresh dollar sales by exporters and foreign banks.
However, the initial bullishness short-lived as trading momentum suddenly turned volatile with the local currency taking a reversal to hit a low of 68.04 in afternoon deals, though it later managed to recoup all its early losses and ended steady at 67.96.
The rupee has appreciated by a good 37 paise in last two trading sessions.
On the global front, the greenback clawed back ground after two-straight day fall ahead of US non-farm payrolls due later in the session.
The US dollar index was trading lower at 101.67 in late afternoon deals.
The RBI fixed the reference rate for the dollar at 67.9522 and for the euro at 71.8662.
In cross-currency trades, the rupee dropped further against the pound sterling to end at 84.01 from 83.65 and remained weak against the euro to settle at 71.97 as compared to 71.35 yesterday.
It also drifted further against the Japanese Yen to finish at 58.63 per 100 yens from 58.30 earlier.
Meanwhile, domestic equities succumbed to modest profit-taking after rallying to overnight to two-month highs.
The benchmark Sensex dropped 119.01 points to end at 26,759.23, while broader Nifty shed 30 points to 8,243.80.
In the forward market, premium for dollar edged higher owing to renewed paying pressure from corporates.
The benchmark six-month premium for June firmed higher to 147-149 paise from 145-146 paise and the far-forward December 2017 contract rose to 288-290 paise from 284.5-285.5 yesterday.
