Re loses early gains on rush for dollars

The rupee erased most gains against dollar as banks bought the greenback to meet demand from oil companies and other importers, dealers said. The Indian unit closed at 48.07 to a dollar compared with 48.25 on Monday. It had risen to an intraday high of 47.57 today.

“There was good demand from importers today as the rupee rose sharply,” said a dealer at a state-owned bank. According to dealers, a large private petrochemical company bought around $25 million at 47.70-47.75 to a dollar from a state-owned bank, while they were also said to be selling dollars at weaker rupee levels today.

 

Another private oil company also bought around $50 million between 47.60 and 47.65, dealers said. Some banks also bought dollars tracking the local share indices that shed most of their gains to end marginally up today, dealers said.