Rupee gains 3 paise versus dollar in late morning trade

In line with equity market, the rupee recovered by three paise to quote 54.66 against the dollar in late morning trade today on renewed selling of dollars by banks and exporters amid sustained foreign capital inflows.

The rupee resumed lower at 54.73 per dollar as against the last closing level of 54.69 on the Interbank Foreign Exchange (Forex) Market.

It dropped further to 54.78 on some dollar demand from banks on the back of higher US currency in overseas market. However, it recovered afterwards to 54.64, before quoting at 54.66 at 10.50 a.m. on fresh selling of dollars following recovery in the equity market. It moved in a range of 54.64 and 54.78 per dollar during the morning deals.

In New York market, the dollar held slim gains against the euro as Japan's yen slowed its pace of appreciation yesterday, with some technical levels and comments from central bank officials leading traders to reversed bets.

Meanwhile, the Indian benchmark BSE-30 share index, Sensex, recovered by 33 points, or 0.17 per cent, while quoting 19,850.71 at 10.55 a.m.