In a range-bound session, the rupee trimmed initial gains and ended six paise lower at 61.52 against the dollar on Monday, in line with a fall in local equities ahead of RBI policy review meeting.
Month-end dollar demand from importers, mainly oil refiners, also put pressure on the rupee, a forex dealer said.
The rupee resumed higher at 61.35 per dollar against the previous close of 61.46 at the interbank foreign exchange market and hovered in a range of 61.37 to 61.60 per dollar before settling at 61.52, a fall of six paise or 0.1%.
Forward dollar premiums ended slightly better. The benchmark six-month forward dollar premium payable in March edged up to 213-1/2-215-1/2 paise from 213-215 paise previously, while far-forward contracts maturing in September rose to 441-444 paise from 439-442 paise.