Rupee washes out initial gains vs dollar, down 6 paise

Fresh dollar demand from importers, weak equity market affects rupee

In line with the equity market, rupee washed out initial gains against the US dollar and was quoted lower by 6 paise to 56.56 per dollar on fresh dollar demand from importers.

The rupee resumed lower at 56.55 per dollar as against the last weekend's level of 56.50 per dollar at the Interbank Foreign Exchange (Forex) Market on mild dollar demand.

However, it recovered afterwards to 56.40 per dollar on fresh selling of dollars by exporters before quoting at 56.56 per dollar at 1040 hrs.

It hovered in a range of 56.40 and 56.57 per dollar during the morning deals.

Meanwhile, in the global market, the Australian dollar pared gains in the early trade following a weak reading on manufacturing activity in key export market like China, as well as domestic retail-sales data, that missed expectations.

The economic data arrived a day ahead of an interest-rate decision by Australia’s central bank.

Oil prices were lower in Asian trade today after OPEC kept its output ceiling unchanged and voiced concerns over weak global economic growth dragging crude demand.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in July, was down 19 cents to $91.78 a barrel in the morning.

Sensex dropped by 64.48 points or 0.33% to 19,695.82 at 1050 hrs.