Rupee pared its initial losses and was trading flat at 67.36, against the US currency in late morning trade on bouts of month-end dollar demand from banks and importers amid lower dollar overseas.The rupee opened lower by 6 paise at 67.41 as against yesterday’s closing level of 67.35 per dollar at the Inter-bank Foreign Exchange (Forex) market.

The domestic unit hovered in a range of 67.43 to 67.35 during the morning deals before quoting at 67.37 per dollar at 1025 hrs.The dollar index was trading down 0.22 per cent at 97.05 against a basket of six currencies in early trade.Overseas, the dollar slipped ahead of the US Federal Reserve’s two—day policy meeting that begins later today, while the yen gained despite expectations that the Bank of Japan will ease it later this week.

Oil prices edged away from three—month lows at Asia trade, supported by a weaker dollar, but concerns of ongoing oversupply weighed on markets and many traders are raising their bets on further price falls.Meanwhile, the benchmark Sensex was also trading flat, marginally up 5.46 points, or 0.02 per cent, to 28,089.88 at 1030hrs.

Rupee- early trade

The rupee depreciated by 7 paise to 67.42 against the dollar in early trade on increased demand for the US currency from importers.Forex dealers said dollar strengthening against other currencies overseas ahead of closely watched meetings this week at the US and Japanese central banks weighed on rupee sentiment. Stock markets slipping in early trade too put pressure on the domestic unit.

The rupee had ended lower by 27 paise to more than two-week low of 67.35 per dollar on Monday at the Interbank Foreign Exchange market despite a sharp rise in the domestic equity market.Meanwhile, the benchmark Sensex fell 31.39 points, or 0.11 per cent, to 28,063.95 in early trade.

Source : thehindu.com

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