Rupee trims initial losses, down 9 paise against dollar

The rupee was trading down by 9 paise against the American currency at 66.12 in late morning deals on dollar demand from banks and importers on the back of bullish greenback in the overseas market.
The Indian rupee opened lower at 66.12 per dollar as against yesterday's level of 66.03 at the Interbank Foreign Exchange (Forex) market.
It hovered in the range of 66.1750 to 66.10 per dollar during the morning deals, before quoting 66.12 at 1030 hrs.
The dollar index is trading up 0.01 per cent at 99.68 against a basket of six currencies.
"Investors are expected to trade cautiously ahead of the data due this week. The rupee is expected to trade weak taking cues from a strong dollar," a forex dealer said.

Overseas, the US dollar sat near a seven-month high against a basket of currencies in Asian early trade as the euro slid on expectations for the European Central Bank to ease monetary policy in December.

Meanwhile, foreign investors bought shares worth Rs
638.01 crore yesterday, as per provisional data.
In forward market today, premium for dollar showed a easy to steady trend.
The benchmark six-month premium payable in May quoted at 187-189 paise from 188-189 paise and far forward November 2016 contract eased to 396-398 paise against 397.50-398.50 paise yesterday.
The RBI fixed the reference rate for the dollar at 66.4235 and for the euro at 72.1359.

In cross-currency trades, the rupee slipped marginally against the pound sterling to end at 99.15 from overnight close of 99.13 and also fell back against the Japanese currency to settle at 54.73 from previous close of 54.25 per 100 yen.
The home currency, however, strengthened further against the euro to end at 71.90 compared to 72.05 earlier.