Rupee surrenders initial gains versus dollar; still up 12 paise

Mumbai: The Indian rupee surrendered its initial gains against the dollar, but was still quoted higher by 12 paise to 54.56 per dollar in the late morning trade on mild selling of dollars by banks and exporters on the back of lower dollar in overseas. Persistent capital inflows from foreign funds into equity market also boosted the rupee value against the dollar,

forex dealers said.

The rupee resumed higher at 54.60 per dollar as against the last closing level of 54.68 per dollar at the Interbank Foreign Exchange (Forex) Market and moved up further to 54.46 per dollar. However, it failed to maintain its initial gains and was quoted at 54.56 per dollar at 1050hrs.

ersistent capital inflows from foreign funds into equity market also boosted the rupee value against the dollar.

It moved in a range of 54.46 per dollar and 54.64 per dollar during the morning deals. In New York market, the Australian dollar stole the currency market spotlight on Tuesday rallying on signs the country's central bank may pause its easing cycle.

The US dollar lost ground against the euro and Japanese yen. Meanwhile, the Indian benchmark sensex firmed up by 60 points, or 0.31 per cent, to 19,407.88 at 1100 hours.

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