The rupee fell from initial gains to trade lower by 8 paise at 66.52 against the American currency in late morning deals on bouts of dollar demand from importers and banks.
The domestic currency resumed higher at 66.40 as against yesterday's level of 66.44 per dollar at the Interbank Foreign Exchange (Forex) market here. It gained further to 66.39, but later plunged to quote 66.52 at 1030hrs.
The rupee hovered in a range of 66.58 to 66.39 per dollar during the morning deals.
The dollar index was up 0.01 per cent at 94.02 as against a basket of six global currencies in Asian trade.
Overseas, the US dollar was lower against its major rivals and mostly remained defensive after carving out a fresh low on the break of a technical barrier overnight as momentum sellers joined in the fray.
Meanwhile, the benchmark BSE Sensex was trading higher by 122.90 points or 0.49 per cent at 25,145.06 at 1100 hrs.
In the forward market, premium for dollar eased on mild
receivings from exporters.
The benchmark six-month premium for December eased to 188-190 paise from 190-191 yesterday and forward June 2017 contract declined to 386-388 paise from 389-390 paise.
Meanwhile, both the indices, Sensex and Nifty ended at fresh 11-mth high on sustained buying from investors ahead of IIP and inflation data coupled with persistent foreign capital inflows amidst higher global cues.
The benchmark Sensex ended higher by 181.45 points or 0.66 per cent to 27,808.14.
