Erasing all initial gains, the rupee on Friday fell by 10 paise to 60.23 in late morning deals on fresh dollar demand from banks and importers amid the U.S. currency strengthening overseas.

The rupee resumed higher at 60.06 per dollar as against the last closing level of 60.13 at the Interbank Foreign Exchange (Forex) market.

It firmed up further to 60.00 per dollar on selling of the U.S. currency by banks on capital inflows from foreign funds in view of strong equity market.

However, it washed out initial gains and quoted lower at 60.23 per dollar at 1100 hours on fresh US currency demand from banks and importers on the back of its higher value in the global market.

It moved in a range of 60.00 and 60.37 per dollar during the morning deals.

In Los Angeles, the dollar rose against key rivals in early trade ahead of monthly jobs figures that will factor into the US Federal Reserve’s assessment of its monetary-stimulus efforts.

The dollar edges higher ahead of the U.S. jobs report for June. The gains in the indexes reflected drops by the euro and the British pound on Thursday after the European Central Bank and the Bank of England each indicated there were no plans to reduce stimulus.

Meanwhile, the Indian benchmark BSE-30 share index, Sensex, rose by 172 points or 0.89 per cent to 19,583.31 at 1100 hours.

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