Re recovers to 40.82 a dollar in early trade

MUMBAI: The rupee on Wednesday moved up in late morning deals to be quoted at 40.8 against US currency on the back of weak dollar overseas and heavy selling by banks and exporters.

In active trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened on a firm footing at 40.83 a dollar from Tuesday's close of 40.96 and remained stable at higher levels at 40.82 in late morning deals.

Forex dealers attributed overnight fall in the rupee to heavy dollar short coverings by banks and some dollar buying by oil refinery companies.

According to them, there was dollar short selling in early trades due to lack of any intervention by the central bank and fresh capital inflows on Monday.

In New York, the greenback lost ground on Tuesday as investors digested tame inflation data which lent further support to the Federal Reserve's case that slower growth can cure US price pressures.

Meanwhile, the global crude oil prices were well above $63 a barrel in Asian trade on Wednesday.