Rupee Trims Initial Gains Vs Dollar, Still Up By 2 Paise

By siliconindia | Friday, 12 April 2013, 12:15 Hrs

Mumbai: The rupee trimmed its initial gains against the American currency but was still quoted up by two paise to 54.49 per dollar on mild selling of dollars by banks and exporters on the back of lower dollar overseas.

The rupee opened higher at 54.41 against the dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 54.39 per dollar and 54.53 per dollar before quoting at 54.49 per dollar per dollar at 1040 a.m.

Banks and exporters preferred to reduce their dollar position due to weakness of dollar in the overseas market, a forex dealer said.

The Indian unit had closed at 54.53. Currency markets were closed for Gudi Padwa and other festivals.

In Los Angeles, the U.S. dollar slipped against Japan’s currency in the early trade, with a break above the yen 100 level proving elusive for the greenback.

The dollar was trading at 99.58 yen in Asian trading hours, down from 99.73 yen late North American session.

The Government will release the consumer price inflation and factory output (IIP) data. Currency markets will look for cues from the data on possible action that the central bank will take in its annual policy review on May 3.

Call rates, G-Secs

The interbank call money rates opened lower at 7.60 per cent from previous close of 7.85 per cent.

The 8.15 per cent government security, which matures in 2022, opened higher at 101.65 from previous close of 101.59. Yields remained unchanged at 7.89 per cent.