Even though local shares closed on a bullish note, the rupee erased its earlier gains to settle unchanged at 74.83 against the US dollar on February 2. Investor mood was pulled down by higher-than-expected borrowing in the coming fiscal year and dismal fiscal deficit predictions from the government, according to forex traders.

The rupee opened at 74.76 against the dollar on the interbank foreign exchange, with an intra-day high of 74.71 and a low of 75.02 against the greenback. The local unit ended the day at 74.83, down one paisa from its previous closing of 74.82.

The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.31 percent to 96.09. Brent crude prices lost 0.30 percent to USD88.89 per barrel, the global standard.

The 30-share Sensex closed the day 695.76 points or 1.18 percent higher at 59,558.33, while the wider NSE Nifty concluded the day 203.15 points or 1.16 percent higher at 17,780.00.

According to stock exchange data, foreign institutional investors were net sellers in the capital market on February 1, offloading shares worth Rs 21.79 crore.

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