Re down 16p

In see-saw trade, the rupee washed out its 40 paise gain in early trade to close 16 paise lower at 55.31 against the dollar tracking a weak stock market, amid fresh demand of the American currency from importers as a late-round of risk-aversion set in. At the Interbank Foreign Exchange market, it commenced higher at 54.90 and touched a high of 54.76 as June inflation numbers showed an easing trend. However, the rupee reacted downwards and touched a low of 55.38 as dollar demand outstripped supply.