Rupee regains 13 paise vs USD in early trade

Forex dealers said besides selling of the American unit by exporters and banks, weakness in the dollar against some currencies overseas also supported the rupee.

HYDERABAD.16/05/2012:-Dollar going strong, despite reserve Bank's efforts to curb the falling rupee have failed to arrest the decline, the rupee tumbled 67 paise to an all-time low Rs. 54.46 against the U.S. dollar on the forex market during session on Wednesday, Hyderabad. The BSE benchmark Sensex dipped below the psychological 16,000 level for the first time since January on heavy selling by foreign funds. Economic turmoil globally as well as domestic concerns over rising inflation and melting equities remain a major factor for the current record fall in rupee.-.Photo:Mohammed_Yousuf

The rupee recovered from over two-month low by rising 13 paise to 66.34 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the U.S. currency by exporters and banks.

Forex dealers said besides selling of the American unit by exporters and banks, weakness in the dollar against some currencies overseas also supported the rupee.

They said, however, a lower opening in the domestic equity market capped the rupee’s gain.

Yesterday, the rupee had lost 28 paise to close at more than 2-month low of 66.47 against the U.S. dollar on fresh month-end demand for the American currency from importers and banks amidst volatile equity markets.

Meanwhile, the benchmark BSE Sensex fell by 115.48 points or 0.44 per cent to 25,703.86 in early trade.