UPDATE: Rupee recovers from initial losses vs dollar, up 7 paise

There has been a fresh selling of dollars by banks on the back of persistent capital inflows

The Indian rupee recovered from initial losses and was quoted higher by seven paise to 54.10 against the American Currency in the late morning trade on fresh selling of dollars by banks on the back of persistent capital inflows.

The rupee resumed lower at 54.22 per dollar against the last weekend's level of 54.17 per dollar at the Interbank Foreign Exchange (Forex) Market on some dollars demand from banks in view of firm dollar in overseas market.     

However, it recovered afterwards to 54.06 per dollar before quoting at 54.10 per dollar at 1040hrs.   

It moved in a range of 54.06 per dollar and 54.25 per dollar during the morning deals.

In New York, euro slipped on last Friday, contributing to the currency's losses against the US dollar for the week, after the European Central Bank said commercial banks would pay back early a smaller-than-expected chunk of cheap three-year loans.

Foreign institutional investors (FIIs) bought shares worth a net Rs 280.30 crore on last Friday as per provisional data from the stock exchanges.     

Meanwhile, the Indian benchmark Sensex rose by 55 points, or 0.29%, to 19,372.28 at 1050 hrs.