Rupee trims initial gains against dollar, still up by 21 paise

The rupee shed some of its early gains, but was still up by 21 paise at 52.43 against the American Currency in the late morning trade on renewed selling of dollar by banks and exporters in view of sustained capital inflows.

The rupee resumed higher at 52.39 per dollar against the last closing level of 52.64 at the Interbank Foreign Exchange (Forex) Market. It moved in a range of 52.23 and 52.50, before touching 52.43 at 10:40 a.m.

Persistent foreign capital inflows into equity market coupled with weakness of dollar in the overseas market mainly boosted the rupee value against the dollar, a forex dealer said.

The Indian benchmark Sensex shot up by 121 points, or 0.65 per cent, to 18,829.94 at 10:50 a.m.

In Sydney market, the US dollar declined in the early trade with investors hoping for fresh easing measures from the Chinese central bank.

The ICE dollar index, which measures the dollar against a basket of six currencies, traded at 79.522 from 79.595 in the previous session.