Rupee up by 22 paise vs dollar in late morning deals

An employee counts Indian rupee notes at a fuel pump after the Indian government decided to hike prices of petrol by 11.5 percent, in Ahmadabad, India, Wednesday, May 23, 2012. The new rates will come into effect with effect from Wednesday Midnight.(AP Photo/Ajit Solanki)

The rupee gained 22 paise to 61.61 per dollar in late morning trade on Thursday on selling of the US currency by banks and exporters amid hopes of more foreign capital inflows into equity market.

The rupee resumed higher at 61.54 per dollar as against the last close of 61.83 at the Interbank Foreign Exchange (Forex) Market.

It hovered in a range of 61.54 and 61.73 before quoting at 61.61 per dollar at 1040 hours.

Banks and exporters preferred to reduce their dollar position on expectation of more foreign inflows into equity in view of recovery in the stock market.

Meanwhile, the Indian benchmark BSE-30 share index, Sensex, rose by 56.77 points or 0.28 per cent to 20,604.30 at 1050 hours.

In New York, the dollar jumped against the yen yesterday as Senate leaders agreed on a deal to reopen the government and raise the US debt ceiling, hours away from the timeline when the Treasury Department had said the US will hit its debt limit.

The oil prices eased in Asian trade as investors booked profits from a rally inspired by an 11th-hour deal in the United States to raise the country’s debt ceiling.