The rupee recovered some of its initial losses against the American currency but was still down by 16 paise at 53.03 on fresh dollar demand from banks and importers despite its weakness in global market.

The rupee resumed lower at 52.96 a dollar as against the last closing level of 52.87 at the Interbank Foreign Exchange (Forex) market and declined further to 53.10 on good demand for American currency in some banks.

However, it recovered afterwards to 53.03 at 1040 hrs, on mild selling of dollars from banks.

In New York market, the euro touched one-month high against the dollar yesterday after ratings firm Moody’s Investors Service held Spain’s rating a notch above the junk grade.

Meanwhile, the BSE 30-stock index, Sensex, resumed higher at 18,653.60. It moved between 18,667.02 and 18,576.41 before quoting at 18,578.56 at 1050 hrs, down 32 points or 0.17 per cent from last close

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