Rupee trims early, up 10 paise vs dollar in late morning trade

Renewed selling of US dollars by banks, exporters on expectation of resumption of foreign capital inflows boosts rupee

The rupee today trimmed its early gains but was still quoting higher by 10 paise in late morning deals to 56.66 against dollar on fresh selling of dollars by banks and exporters.

The rupee resumed higher at 56.56 per dollar as against the last closing level of 56.76 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 56.51 per dollar before quoting at 56.66 per dollar at 1040hrs.

It hovered in a range of 56.51 per dollar and 56.66 per dollar during the morning deals.

Renewed selling of US dollars by banks and exporters on expectation of resumption of foreign capital inflows into equity market mainly boosted the rupee value against the dollar, a forex dealer said.

The Indian benchmark Sensex rose by 123.51 points, or 0.63%, to 19,733.99 in the late morning trade.

In the global market, Australia’s currency lost ground in the early trade after the country’s central bank indicated that future interest-rate cuts may be in store.