Rupee fails to maintain initial gains, at 56.45/dollar

Fresh dollar demand from banks and importers affects rupee

The rupee failed to maintain its initial gains against the American currency and was quoted lower by one paisa to 56.45 per dollar in the late morning trade on fresh dollar demand from banks and importers.

The rupee resumed higher at 56.43 per dollar against the last closing level of 56.44 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 56.31 per dollar on selling of dollars by exporters.

However, it failed to maintain its gains and was quoted slightly lower at 56.45 per dollar at 1040hrs.

It moved in a range of 56.31 per dollar and 56.46 per dollar during the morning deals.

Uneven demand and supply for dollars mainly affected the rupee against the dollar, a forex dealer said.

In Los Angeles, Australia's currency rose in the early trade, bouncing back from initial losses spurred by Australian economic growth figures that missed analyst expectations.

The Australian dollar traded at 96.44 US cents, a jump from its intraday low of 96.04 US cents hit after first- quarter gross domestic product in Australia showed growth of 0.6%.
    
Meanwhile, the Indian benchmark Sensex moved up by 13.33 points, or 0.07%, to 19,559.11 at 1050hrs.