Rupee trims initial losses, still down 17 paise

In line with equity market, the rupee trimmed its initial losses but was quoted still lower by 17 paise on dollar demand from banks and importers despite weakness of the US currency overseas.
The rupee resumed lower at 62.81 per dollar as against the last closing level of 62.56 at the Interbank Foreign Exchange market on initial dollar buying.
However, it trimmed its initial losses and recovered to 62.65 per dollar before quoting at 62.73 at 1045 hours in view of selling of dollars by some banks.
It moved in a range of 62.65 and 62.82 per dollar during the late morning deals.

In New York, the dollar dropped to its lowest level against the yen in more than two months yesterday after data showed a sharp slowing in the pace of US manufacturing-sector expansion.
The Institute for Supply Management's manufacturing index declined more than expected to 51.3 per cent in January from 56.5 per cent in December, but companies attributed the drop in part to poor weather.
Meanwhile, the benchmark Sensex fell by 139.16 points, or 0.69 per cent, to 20,070.10 at 1045 hours.