The rupee slipped from its early gains and was trading a tad weak at 61.56 against the dollar at 4.10 p.m. local time on bouts of dollar demand from importers on the back of bullish US currency overseas.
After opening a tad higher at 61.49 per dollar against the previous close of 61.53, the domestic unit hovered in the range of 61.48 and 61.59 per dollar in the afternoon deals.
Better-than-expected inflation data released on Wednesday amid initial gains in the domestic equity market supported the rupee sentiment in early trade.
The consumer inflation fell to a record low of 5.52 per cent in October against 6.4 per cent in September. The expectation was around 5.8 per cent for the month. The numbers were dragged down by a slow pace of increase in crude and food inflation.
The rupee had edged higher by four paise to end at 61.51 against the American currency in yesterday’s trade on fresh selling of dollars by banks and exporters.
In the New York market, the US dollar was trading little changed taking time out from its rally against its major rivals in early trade, as dealers awaited a batch of Chinese and US data.