Rupee recovers after initial losses vs dollar in late morning

Mumbai, May 7: The

recovered after initial losses against the US

in the late morning

due to fresh selling of the American currency by banks and exporters.

The rupee resumed lower at 53.63/64 per dollar at the Interbank Foreign Exchange (Forex) as against Friday's level of 53.47/48 due to a sharp fall in the stock market.

However, it recovered to 53.39 per dollar before quoting at 53.41/42 per dollar at 1030hrs in view of fresh selling of dollars by banks and exporters.

The rupee moved between 53.39 and 53.75 per dollar during the morning trade. Forex dealers said some measures announced by the Reserve Bank late on Friday to attract inflows, in view of falling rupee, restricted the losses.

RBI raised the interest rate ceiling on NRI deposits in foreign currencies by up to 3 per cent and deregulated interest rates on export finance.

Meanwhile, the BSE 30-Scrip index, Sensex, dropped by 290 points or 1.71 per cent in the early trade, extending losing streak for the fourth straight session on sustained selling by funds amid weak trend on other Asian bourses.

PTI