The rupee erased its initial gains and was trading weak by 14 paise at 61.81 against the dollar at 4.25 pm local time due to fresh dollar demand and capital outflows from the domestic equity market.
After opening higher by 11 paise at 61.56 against the US dollar in early trade, the domestic unit hovered in the range of 61.56 and 61.86 in the afternoon deals.
According to forex dealers, besides increased dollar demand, the dollar’s gains against other currencies overseas hurt the rupee sentiment.
The rupee had ended at one-week high by gaining 13 paise at 61.67 against the greenback yesterday on persistent selling of dollar by banks and exporters as RBI kept the interest rates unchanged.