Rupee falls; losses seen capped by bank dollar sales

The rupee fell to 61.83/85 from its previous close of 61.625/635, tracking global gains in the dollar after an upbeat report on U.S. services sector activity kept alive some expectations the Fed might scale back stimulus as soon as next month.

However, gains in dollar/rupee may be capped as banks are seen selling the greenback on behalf of corporate clients, traders say.

The European Central Bank's rate decision on Thursday likely to give further direction as ongoing speculation it could cut interest rates, or at least sound dovish, kept the common currency under pressure, benefitting the dollar.

Copyright: Thomson Reuters 2013