Rupee recovers after initial losses against dollar

A man counts U.S. dollars at a currency exchange outlet in New Delhi, India, Friday, July 29, 2011. The Indian rupee ended almost flat against the U.S. dollar in a volatile trading session Thursday, weighed down by falling shares, a sluggish euro and demand for dollars from oil importers, according to news agencies. The White House and Congress are locked in a stalemate over the amount by which the U.S. debt ceiling should be raised and spending cut to help avoid a default by the world's largest economy. (AP Photo/Manish Swarup)

The rupee recovered after initial losses against the American currency and was quoted at 60.46 per dollar in morning trade on fresh selling of dollars by banks and exporters in view of a strong equity market.

The rupee resumed lower at 60.52 per dollar as against the last weekend’s level of 60.47 per dollar at the Interbank Foreign Exchange (Forex) market on initial dollar demand from some banks and importers on the back of higher dollar in the overseas market.

However, it recovered immediately to 60.43 per dollar before quoting at 60.46 per dollar at 1000 hours on hopes of good foreign capital inflows due to strong equity market.

It moved in a range of 60.43 and 60.53 per dollar during morning trade.

The Sensex rallied to an all-time high of 26,582.27 before quoting at 26,578.36 at 1000 hours.

In New York market, the US dollar moved higher on last Friday after a top Federal Reserve official suggested the economy is moving toward the central bank’s objectives, pushing the Greenback to its biggest weekly rise against the yen since July 2013.