Rupee down 4 paise at 54.32/dollar in late morning trade

Good dollar demand from importers amid weak local equity market affects rupee

Erasing early gains, the rupee today fell by four paise to 54.32 in late morning trade due to good dollar demand from importers amid weak local equity market.

The rupee resumed lower at 54.35 per dollar as against the last closing level of 54.28 at the Interbank Foreign Exchange (Forex) Market. It moved down further to 54.36 before quoting at 54.32 per dollar at 1050 hrs.

It moved in a range of 54.26 and 54.36 per dollar during the morning deals.

In New York, the euro fell yesterday trading at a fourth-month low level against the US dollar as debt-troubled Cyprus worked to meet a bailout-related deadline, and as a purchasing-managers' index pointed to a deepening economic downturn in the euro zone.

Meanwhile, oil prices were mixed in Asia early today on fears of a possible default by Cyprus as the European Central Bank said it would halt funding to lenders if a new bailout deal was not found, analysts said.

New York's main contract, light sweet crude for delivery in May added 11 cents to $92.56 a barrel.

Meanwhile, the BSE-30 share index, Sensex, dropped by 30.68 points, or 0.16%, quoting 18,762.19 at 1050 hrs.