The rupee trimmed its initial gains but was still quoted higher by 32 paise to 61.09 per US dollar in early trade on Monday on persistent selling of the American currency by banks and exporters on hopes of more foreign capital inflows amidst a strong equity market.

Bankers and exporters preferred to reduce their dollar position as the equity market soared on strong performance of BJP in the Assembly polls.

The rupee resumed higher at 60.90 per dollar as against the last weekend’s level of 61.41 at the Interbank Foreign Exchange (Forex) Market. However, it trimmed initial gains and was quoted at 61.09 per US dollar at 1040 hrs (IST).

The domestic unit hovered in a range of 60.90-61.13 per US dollar during the morning deals.

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