The rupee trimmed its initial gains and was trading weak by 10 paise at 63.21 against the dollar at 4.10 pm local due to dollar's gains other currencies overseas.
The domestic unit resumed higher at 63.05 per dollar against yesterday’s closing level of 63.11 at the Interbank Foreign Exchange market on increased dollar selling by exporters and strong domestic equity market.
It hovered in the range of 62.99 and 63.25 in the afternoon trade.
The surging equity market is lifting the rupee sentiment, though strong dollar overseas is capping the gains, a dealer said.
In the New York market, the US dollar ruled firm against the its major rivals in early trade.
Forex dealers said besides selling of the American currency by exporters, a strong market buoyed the rupee sentiment, but the dollar’s strength against other currencies overseas limited the gains.
The US dollar index hit a high of 89.4 yesterday- US employers have hired more workers in November than during any month in the last 3 years
— Rajalakshmi Nirmal (@crajalakshmic)
December 19, 2014The rupee had gained 50 paise, the steepest single day gain in the last seven months, to close at 63.11 against the dollar yesterday, in line with strong recovery in stocks.
Meanwhile, the benchmark BSE Sensex surged 245.27 points or 0.9 per cent to end at 27,371.84.