Rupee pares initial gains, still up 3 paise at 55.55/dollar

Fresh dollar selling by exporters & some banks amidst firm dollar overseas affected rupee

The rupee pared its initial gains to trade higher marginally by 3 paise to 55.55 against the American currency in the late morning trade on fresh dollar selling by exporters and some banks amidst firm dollar overseas.

The rupee resumed higher at 55.40 per dollar against yesterday's close of 55.58 per dollar at the Interbank Foreign Exchange (Forex) Market.

It later moved down to 55.60 on month-end dollar demand from importers amidst weak local equity markets, before quoting at 55.55 at 1040 hrs.

In the New York market, the dollar gained ground against the euro yesterday as investors feared that the European Central Bank's policy actions this week may not match expectations stirred by ECB President Mario Draghi's declaration.

Meanwhile, crude oil prices were showing mixed response in Asian early trade today as wary traders looked to meetings this week by the Federal Reserve and European Central Bank (ECB) for market leads, analysts said.

New York's main contract, light sweet crude for delivery in September, added six cents to  $89.84 a barrel.

Meanwhile, the BSE benchmark Sensex was quoted lower by 22 points, or 0.13%, at 1100 hrs.