Rupee recoups early losses, trades flat at 64.96 vs dollar

Banks, exporters sell dollars on the back of a weak greenback in overseas markets

Rupee recovered from initial losses against the American currency and was trading at yesterday's closing level of 64.96 in late morning deals on fresh selling of dollars by banks and exporters on the back of weak greenback in overseas markets.

The rupee resumed lower at 64.97 per dollar as against the previous closing level of 64.96 per dollar at the Interbank Foreign Exchange (Forex) Market and moved down further to 64.9950 on initial dollar demand from banks and importers.

However, it recovered from initial losses to 64.94 per dollar on selling of dollars by exporters before quoting at 64.96 per dollar at 1115 hrs.

The domestic unit hovered in a range of 64.94 per dollar and 64.9950 per dollar during the morning trade.

Meanwhile, the forex dealers were in a wait-and-watch mode ahead of the US Federal Reserve meeting, which is starting today.

The dollar index was trading 0.14 per cent lower against a basket of six currencies in the morning trade.

In the global market, dollar fell against most of its rivals yesterday on weaker-than-expected US data on housing and manufacturing sectors.

Meanwhile, the BSE Sensex was quoted lower by 141.83 points or 0.52 per cent in the late morning deals.