Rupee trims early gains vs dollar in late morning

In line with the equity market, the rupee trimmed its initial gains against the American currency, but was quoted higher by 27 paise to quote at 67.80 on mild selling of dollars by banks and exporters.
The rupee resumed higher at 67.85 per dollar as against yesterday's closing level of 68.07 at the Interbank Foreign Exchange (Forex) market and moved up further to 67.76 on heavy selling of dollars by banks on the back of lower dollar in the overseas market.
However, it trimmed the initial gains and moved down to 67.86 before quoting at 67.80 at 1100 hours, still showing a gain of 27 paise or 0.40 per cent.

It hovered in a range of 67.76 and 67.86 during the morning trade.
In the global market, the dollar logged its largest one-day drop versus the euro since early December, after a disappointing reading on US service-sector activity was seen putting Federal Reserve interest-rate increase on hold.
The BSE benchmark Sensex failed to maintain initial gains but was quoted still higher by 142.71 points or 0.59 per cent at 1100 hrs.

Foreign portfolio investors (FPIs) remained a net buyer
after a long spell of selling spree as data showed they bought shares worth Rs 911.98 crore in yesterday's trade.
In forward market, premium for dollar rose sharply due to paying pressure from corporates.

The benchmark six-month premium for August firmed up to 225-227 paise from 221-223 paise and far-forward February contract also climbed to 430-432 paise compared to 425-427 paise yesterday.
The RBI fixed the reference rate for the dollar at 67.27 and euro at 73.66.
In cross-currency trades, the rupee declined further against the pound sterling to end at 94.89 from overnight finish of 94.67 and fell back against the euro to close at 73.67 from 73.28 earlier.
The domestic unit, however, recovered against the yen to settle at 58.96 per 100 yens from 59.09 yesterday.