Moody's has changed India's outlook ratings to 'negative' from 'stable.'
Sustained foreign fund inflows supported the rupee though the gains were capped by hardening crude oil prices, traders said.
Weakening of the US dollar vis-a-vis other currencies and easing crude oil prices restricted the fall, forex brokers said.
Forex inflows through Bajaj Finance share sale to qualified institutional investors helped the rupee hold strong, said analysts.
At the interbank foreign exchange market, the rupee opened on a weak note at 70.96 and fell further to trade at 70.98.
A strengthening dollar against other overseas currencies also kept investors on the edge, forex dealers said.
The gains in the rupee were capped by crude oil hitting the USD 60 per barrel mark, forex brokers said.
The rupee finally settled at 71.07, unchanged from its previous close.
Forex traders said most of the Asian currencies gained against the US dollar on China's offer to buy extra US goods.
Moreover, foreign fund outflows, heavy selling in domestic equities and rising crude oil prices also kept pressure on the Indian rupee.