Rupee trims early gains, down 1 paisa vs dollar

Trades at 61.64 following mild bouts of dollar demand from importers

The rupee trimmed its initial gains and quoted down by one paisa to 61.64 against the US currency in late morning deals today on mild bouts of dollar demand from importers.

Earlier, the rupee resumed slightly higher at 61.62 per dollar as against yesterday close of 61.63 at the Interbank Foreign Exchange market.

Later, it traded strong at 61.50 on sustained dollar selling by exporters before quoting at Rs 61.64 at 1100 hours.

It hovered in the range of 61.50-61.64 per dollar during the morning trade.

Rallying equities and heavy capital inflows capped the rupee losses, dealers said.

In New York, the US dollar is trading higher against basket currency in early trade and the Canadian dollar languished at its lowest in nearly six years, having suffered a massive drop after the Bank of Canada stunned markets by cutting interest rates.

Meanwhile, the BSE Sensex were trading higher by 100.91 points, or 0.35 per cent, to 28,989.77 in late morning trade.