Rupee erases gains, holds steady at 62.50 against dollar

The rupee wiped out initial gains and closed unchanged at 62.50 against the dollar today amid alternate bouts of demand and supply and falling local shares.
At the interbank foreign exchange market, the rupee opened higher at 62.45 a dollar from the overnight close of 62.50 and improved to 62.28 on sustained dollar sales by exporters. However, it fell to a low of 62.5350 before settling stable at 62.50.
"The gains were mainly attributed to the slight weakness in the US dollar and recovery in the euro. However, the currency could not sustain its gains for long as the benchmark indices posted losses today and dollar demand seemed to have returned to the market," said Abhishek Goenka, CEO of India Forex Advisors.

The 30-share benchmark Sensex fell 180.06 points amid profit booking as oil prices recovered. Overseas investors bought shares worth a net Rs 837.80 crore yesterday, according to provisional data with the stock exchanges.
The dollar index, which tracks the US currency against a basket of six other major currencies, was down 0.08 per cent, pulling away from gains notched up after the US and other major world powers struck a nuclear accord with Iran.
"...Local equities closed down by almost 1 per cent, which not only capped the rupee gain but also eroded its initial strength," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).