The Indian rupee came off two week highs to close almost flat on Wednesday as local shares gave up most of their gains, while a strengthening dollar overseas also soured sentiment. The partially convertible rupee closed at 48.82/83 per dollar, off a high of 48.60, its strongest since January 19, and little changed from Tuesday's close of 48.81/82.
"People who had taken large positions earlier on expectations of large moves, squared those positions while the stock market related outflows also happened towards the end of trading," a senior dealer at a private bank said. Dealers also added that the dollar's recovery against major currencies overseas hurt sentiment for the local unit.