Rupee recovers after initial losses vs dollar

Mumbai : The Indian rupee recovered after initial losses against the American currency in the late morning trade and was steady at 53.28 per dollar on mild selling of dollars from banks and exporters on the back of persistent capital inflows from foreign funds.

The rupee resumed lower at 53.40 per dollar as against the last closing level of 53.28 per dollar om the Inter bank Foreign Exchange (Forex) Market on good dollar demand from banks and importers due to higher dollar in overseas market.

However, it recovered afterwards to 53.24 per dollar before quoting at 53.28 at 1040hrs.

It moved in a range of 53.24 per dollar and 53.42 per dollar during the morning deals.

In New York market, the euro pulled back from recent highs yesterday with traders locking up profits on renewed concerns out of Europe, with the dollar gaining ground against most major rivals.

Foreign institutional investors continued their buying spree by investing net Rs 856.94 crore yesterday as per provisional data from the stock exchanges.

Meanwhile, the Indian benchmark Sensex declined by 39 points, or 0.20 per cent, to 19,712.27 at 1055hrs.