Rupee down 12 paise, at 55.19/dollar

Erased initial gains on fresh demand for the American currency from banks and importers

The rupee erased initial gains today and was down 12 paise at 55.19 against the dollar on fresh demand for the American currency from banks and importers.

The dollar strengthened in the overseas currency markets as well.

The rupee resumed lower at 55.14 per dollar as against yesterday's close of 55.07 at the Interbank Foreign Exchange (Forex) Market. It moved between 55.21 and 55.02 per dollar before quoting at 55.19 per dollar at 1040hrs.

The rupee was in line with the stock market movements.

It had strengthened by 45 paise yesterday to close at one-month high of 55.07 against the dollar, tracking a jump in local shares.

The BSE 30-stock index, Sensex, resumed higher at 17,638.53 this morning and shot up further to 17,679.37.

However, it declined to 17,609.24 before quoting at 17,646.39 at 1050 hrs, up 44.61 points or 0.21% from yesterday's close.