Rupee trims losses, down 4 paise at 54.50/dollar

Increased dollar demand from banks on firm global cues influences rupee

The rupee trimmed its initial sharp losses but was still quoted down by four paise to 54.50 against the American currency in the late morning trade today on dollar demand from banks on the back of firm global cues.

The local unit resumed lower at 54.52 per dollar as against the last closing level of 54.46 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to a low of 54.75 per dollar on sustained dollar demand from banks and importers in view of firm dollar overseas.

However, it recovered from its initial sharp losses to 54.48 per dollar before quoting at 54.50 per dollar at 1050 hrs on hopes of more foreign capital inflows into equity market.

In New York, the US dollar rose against the Japanese yen to its highest level since March yesterday and sat little changed versus the euro after regional leaders moved closer to a banking union and gave Greece its bailout money.

Meanwhile, the BSE benchmark Sensex moved up by 9 points, or 0.05%, to 19,238.12 at 1050 hrs.