Rupee surrenders initial gains, down 3 paise against dollar

Mumbai: Erasing earlier gains, the rupee on Tuesday lost three paise to 54.52 against the dollar in late morning trade due to renewed demand for the US currency from banks and importers amid firm global cues. Forex dealers said the local unit resumed higher at 54.37 as against the last closing level of 54.49 per dollar at the Interbank Foreign Exchange (Forex) Market and moved up further to 54.34 on selling of dollars by banks on the back of rise in equity market due to persistent foreign fund inflows.

However, it failed to maintain its gains by slipping three paise to 54.52 per dollar at 1050 hrs. It moved in a range of 54.34 per dollar and 54.53 a dollar during the morning deals.

In New York, the dollar recovered some ground on Monday climbing back towards a multi-year high against the Japanese yen hit following under reports the Bank of Japan will give in to government pressure to raise its inflation target. Meanwhile, the Indian benchmark Sensex touched 20,000-mark in the early trade and was quoted higher by 47.51 points, or 0.24 per cent, to 19,953.92 at 11:00 am.

Rupee lost its gains due to renewed demand for the US currency from banks and importers amid firm global cues.

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