Rupee trims initial gains vs dollar, still up 17 paise

The rupee trimmed its early gains against the dollar but was still up 17 paise to 62.27 on selling of US currency by banks and exporters amid weakness of the greenback overseas.

Firm equities and good capital inflows from foreign funds supported by easing of norms by Reserve Bank for providing swaps to banks that are borrowing funds overseas also boosted the rupee sentiment. The rupee resumed strong at 62.20 per dollar as against the last closing level of 62.44 at the Interbank Foreign Exchange (Forex) Market and hovered between 62.38 and 62.12 before quoting at 62.27 at 1040 hrs. In New York market, the US dollar fell against some rivals yesterday.

Meanwhile, crude oil prices edged lower in Asian trade today after an unexpected surge in US crude stockpiles and fresh signs of warming relations between the West and crude producer Iran, analysts said. The benchmark Sensex moved up by 34.94 points or 0.18% to 19,891.18 at 1050 hrs.