Rupee trims gains, still up 3 paise vs USD in late morning

The volatility in rupee continued as it trimmed initial gains, but was still quoting higher by 3 paise at 68.44 against the American currency in late morning deals on sustained selling of dollar from banks and exporters amid higher equities.
The domestic unit resumed higher at 68.39 per dollar as against yesterday's closing of 68.47 per dollar at the Interbank Foreign Exchange (Forex) market.
Later, it gained further to 68.32 on bouts of dollar selling from banks before quoting at 68.44 at 1030 hrs.
The domestic unit hovered in a range of 68.45 and 68.32 per dollar during morning deals.

Meanwhile, the dollar index was down by 0.12 per cent at 96.74 against a basket of six currencies in the Asian trade.
Overseas, the US dollar were mixed against its major rivals in early Asian trade, While, commodity currencies gained from having benefited hugely from a jump in oil prices, while an absence of fresh cues in minutes of the Federal Reserve January meeting saw the greenback shuffle sideways.

In forward market, premium for dollar moved down further
due to persistent receivings from exporters.
The benchmark six-month premium for August dropped to 208-210 paise from 210-212 paise yesterday and far-forward February 2017 contract also eased further to 413-415 paise from 414-416 paise.

The RBI fixed the reference rate for the dollar at 66.6088 and euro at 75.3012.
In cross-currency trades, the rupee dropped further against the pound sterling to finish at 96.15 from 95.76 yesterday while recovered against the euro to close at 75.01 from 75.49.
The domestic unit also recovered against the yen to settle at 59.67 per 100 yen from 59.97.