The rupee failed to maintain initial gains and was down by 5 paise to 48.74/75 against the U.S. currency in the late morning trade on mild demand from banks and importers on the back of higher dollar in Asian market.

The rupee resumed higher at 48.60/61 per dollar at the Interbank Foreign Exchange (Forex) market, as against the last weekend’s level of 48.69/70 per dollar in view of persistent capital inflows from foreign funds into equity market.

However, the rupee declined afterwards to 48.80 per dollar before quoting at 48.74/75 per dollar on renewed dollar demand from banks and importers on the back of higher dollar in the Asian market.

In the Sydney market, the dollar index edged higher in the early trade, taking back some recent losses linked to the better-than-expected U.S. economic data.

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