Rupee up 16 paise at 55.95 against dollar

Mild selling of dollars from banks in view of weakening dollar in New York boosted market sentiment

The rupee was trading 16 paise up at 55.92 against the US dollar due mild selling of the American currency by banks as it weakened against other currencies in the overseas market.

Exhibiting volatile movement in early trade today, the rupee resumed lower at 56.25, as against yesterday's close of 56.08 at the Interbank Foreign Exchange (Forex) Market.

It then hovered between 55.82 and 56.25 per dollar, before quoting at 55.92 at 1110 hrs.

Mild selling of dollars from banks in view of weakening of dollar in New York mainly boosted the market sentiment, a forex dealer said.

In New York, the euro recovered from an almost two-year low against the dollar yesterday on reports that International Monetary Fund has begun to explore the possibility of a bailout package for Spain.

Meanwhile, BSE 30-scrip benchmark Sensex was down 34 points or 0.21%.