Rupee bounces back by 12 paise vs dollar

The domestic currency resumed firm at 42.82/83 a dollar from its overnight close of 42.90/91 a dollar and later improved to 42.78/79 a dollar in late morning deals.     

Rupee drew support from reports the central bank may consider increasing the Cash Reserve Ratio or short-term interest rate to contain the rising inflation, dealers said.     

The BSE benchmark Sensex, however rose by 201 points in early trade ahead of the release of inflation numbers, while Asian indices were up by nearly 1.0 per cent.