Rupee Gains In Early Trade Ahead Of RBI Policy

Rupee gained further by 11 paise to 66.10 per dollar against the US currency in late morning deals following sustained bouts of dollar selling by banks and exporters amid bearish dollar overseas.

The rupee resumed marginally lower by 4 paise at 66.25 per dollar against yesterday's level of 66.21 at the Inter-bank Foreign Exchange (Forex) market.

It hovered in a range of 66.27 and 66.07 during the morning deals before quoting 66.10 per dollar at 1030 hrs.

The dollar index was down 0.03 per cent at 94.54 as against a basket of six currencies in the early trade.

At the overseas, the dollar was on the defensive early today, nursing deep losses against the euro and yen after Friday's firm US jobs report failed to shift a broadly held view that the Federal Reserve will remain cautious on raising interest rates this year.

Oil prices tumbled further in Asia on dwindling hopes that key producers will reach an agreement to freeze output when they meet this month to discuss a global supply glut. Meanwhile, the benchmark BSE Sensex was trading down by 134.41 points or 0.53 per cent at 25,265.24 at 1030 hrs.