The rupee pared initial gains to weaken by 3 paise to 67.07 against the dollar in late morning deals on fresh bouts of dollar selling by banks and exporters.
The rupee opened flat at 67.04 per dollar from yesterday’s closing level at the Inter—bank Foreign Exchange (Forex) market.
The domestic unit hovered in a range of 67.08 and 66.97 during the morning deals before quoting at 67.07 per dollar at 1030 hrs.
The dollar index was trading down 0.33 per cent at 96.34 against a basket of six currencies in early trade.
Overseas, the yen firmed in jumpy market conditions in Asia today, spiking to a 2 1/2—week high against the dollar as investors braced for the possibility that the Bank of Japan’s expected easing steps will disappoint market participants hoping for more radical measures.
Oil prices remained around April lows at the Asian trade as slowing economic growth threatened to worsen ongoing oversupply of crude and refined products.
Meanwhile, the benchmark BSE Sensex was trading down by 55.98 points or 0.23 per cent to 28,142.64 at 1030 hrs.
Rupee value in early trade
Extending its earlier gains, the rupee edged higher by another 6 paise to trade at 66.98 against the dollar in early trade on sustained selling of the American currency by exporters.
Besides, persistent foreign capital inflows and weakness of the dollar against other currencies overseas boosted the rupee value against the dollar, but a lower opening in the domestic equity market capped the gains, forex dealers said.
The rupee had gained 10 paise to close at 67.04 per dollar on Thursday on persistent selling of the American currency by banks and exporters in view of sustained foreign capital inflows into domestic equities.
Meanwhile, the benchmark BSE Sensex was quoting lower by 76.06 points, or 0.26 per cent, to 28,132.56 in early trade.
