The rupee wiped off its early losses and was trading a tad strong at 61.03 against the dollar at 12.36 p.m. local time.
The rupee opened flat at 61.06 against Wednesday's close of of 61.08 on the back of a lower opening in the domestic equity market.
However, at 9.30 a.m., the domestic unit weakened to 61.13 on strong month-end dollar demand from importers.
According to analysts, the slowdown in foreign inflows into the Indian market has weighed on the domestic unit.
The overnight call money rate (the rate at which banks borrow money from each other to overcome liquidity mismatches) opened higher at 8.75 per cent against the previous close of 7.1 per cent.
The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, softened a tad to 8.84 per cent from the previous close of 8.85 per cent. Prices of the bond rose to ₹99.88 from ₹99.85. Bond yields and prices move in the opposite direction.
