Rupee erases early gains; down 10 paise against dollar

Mumbai, July 2: The

failed to retain initial gains against the

and slipped 10 paise to 55.71 this morning on fresh demand for the American currency by banks and importers due to uncertainty in the Forex market.

The rupee resumed higher at 55.50 per dollar as against the last weekend's level of 55.61 at the Interbank Foreign Exchange (Forex) Market on selling of dollars by banks.

This was on the back of lower dollar in the overseas market coupled with good capital inflows from foreign funds in equity market.

However, it failed to maintain earlier gains and was quoted lower at 55.71 per dollar at 1040 hrs on fresh dollar demand from banks, after moving between 55.52 and 55.75.

Meanwhile, the BSE 30-stock benchmark Sensex was down 26 points or 0.15 per cent in the late morning trade.

In New York, the euro soared on Friday against the dollar following EU steps aimed at stabilising Spanish and Italian bond markets establishing a euro-zone wide banking union.

PTI