Mumbai: Erasing initial gains, the rupee today fell four paise to 55.38 against the US dollar in late morning trade on month-end demand for the American currency from banks and importers despite firm trend at local equity markets. The local unit resumed higher at 55.28 per dollar as against Friday's closing level of 55.34 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed further to 55.20 on sustained dollar selling by exporter and some banks amid strong local equity market. However, it reacted downwards to 55.40 per dollar on month-end dollar demand from importers, mainly in oil refiners, before quoting at 55.38 per dollar at 1040 hours. In New York, dollar erased most of its losses on last Friday after the euro briefly jumped following more comments from European Central Bank President Mario Draghi about policy options.

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