Rupee still down by 8 paise vs dollar

The rupee staged a mild recovery but was still trading lower by eight paise to 63.37 against the American currency in late morning trade on fresh dollar demand from banks and importers on the back of higher greenback in the overseas market.

The rupee resumed lower at 63.43 per dollar as against the last weekend's level of 63.29 at the Interbank Foreign Exchange and dropped further to 63.50 on initial dollar demand from banks and importers.

However, it recovered from its initial losses and was quoted at 63.37 per dollar at 1000 hours on selling of dollars by banks on hopes of more foreign capital inflows into equity market. It moved in a range of 63.36 to 63.50 per dollar during the morning trade.

In New York market, the US dollar ended higher against other currencies on last Friday on expectations that the Federal Reserve will raise interest rates while the European Central Bank and Bank of Japan continue to loosen monetary policy in the year ahead.

Meanwhile, the Indian benchmark Sensex was quoted higher by 103.83 points, or 0.37 per cent, to 27,991.73 at 1000 hours after crossing 28,000-mark in the early trade.