The rupee pared its initial gains to touch 53.67 against the dollar at the Interbank Foreign Exchange market due to oil-related dollar buying from importers.
After opening stronger at 53.55 from its previous close of 53.75 per dollar, the domestic unit jumped to a three-month high of 53.37 against the dollar in the first session of the trade.
However, the demand for dollar from oil importers limited the gains and the rupee revered its early gains and was trading at 53.61 per dollar at 1.41 p.m. local time.
The gains were on the back of import duty hike on gold by 2 percentage points to 6 per cent to curb the demand and limit the surging fiscal deficit.
Gold import-related buying of the American currency is an important source of dollar demand after oil in the currency markets.
