Rupee trims initial losses vs dollar, still down 22 paise

Heavy demand of the US currency from banks and importers affects rupee

The rupee trimmed its initial weakness today but was still down by 22 paise to 54.47 per dollar on heavy demand of the US currency from banks and importers as it was strong overseas despite good capital inflows into equities.

The rupee resumed lower at 54.57 per dollar as against the last closing level of 54.25 at the Interbank Foreign Exchange (Forex) Market and dropped further to a low of 54.59.

However, it recovered slightly due to some selling by exporters to quote 54.47 per dollar at 1040 hrs.

It moved in a range of 54.46 and 54.59 per dollar during the late morning deals.

In international market, the dollar rallied against the Japanese yen, stretching its gains which spiked above the key 100-yen level for the first time in four years.

Meanwhile, crude prices were trading lower in Asian trade on a rise in US stockpiles, with the strong dollar also putting pressure on prices.

The Indian benchmark BSE-30 share index, Sensex, rose by 81.48 points, or 0.41%, to 20,020.52 in late morning trade today.