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.
Forex traders said, the rupee was trading higher as investors believe RBI will go for yet another rate cut to boost economic growth.
Sustained foreign fund outflows and sell-offs in domestic equities put pressure on the forex market, somewhat capping the rupee gains.
At the interbank foreign exchange the rupee opened at 70.75, registering a rise of 12 paise over its previous close.
Forex traders said globally risk appetite has plunged as US-China trade concerns continue to linger.