Rupee trims initial gains, still up by 15 paise at 53.71/dollar

Selling of dollars by banks, exporters amidst sustained foreign capital inflows helps rupee

Moving in line with the equity market, the Indian rupee trimmed its initial gains but was still quoted up by 15 paise to 53.71 against the American currency in the late morning trade due to selling of dollars by banks and exporters amidst sustained foreign capital inflows.

Weakness of dollar in the overseas market and persistent foreign capital inflows mainly boosted the rupee value, a forex dealer said.

The rupee resumed higher at Rs 53.64 per dollar against the last closing level of Rs 53.86 per dollar at the Interbank Foreign Exchange (Forex) Market and moved up further to Rs 53.60 per dollar.

However, it trimmed its initial gains and was still quoted higher at 53.71 per dollar at 1040 hrs.

It moved in a range of 53.60 and 53.76 per dollar during the morning deals.

In New York, the euro rose against the dollar yesterday, with gains for the European shared currency coming after financially troubled Italy saw its borrowing costs rise less than had been feared.

Meanwhile, the Indian benchmark sensex rose by 141 points, or 0.74%, to 19,293.41 at 1050 hrs.