The rupee pared initial gains and was trading at 54.18 in the afternoon trade due to dollar demand from importers.
The Indian unit today opened stronger at a one-week high of 54.10 on a stronger euro and the Government’s plan to ease overseas investments in the debt market. It had closed at 54.33 per dollar on Friday.
The rupee touched an intra-day high of 54.05 in the early trade on Finance Minister P. Chidambaram’s statements on Saturday.
Chidambaram had called for easing the restrictions for foreign institutional investors in government and corporate bonds next month to attract inflows and help fund a widening current account deficit.
The euro gained after Cyprus arrived at a deal with international lenders for a bailout to save itself from the debt crisis.
Month-end demand for the American currency is likely to put further pressure on the rupee.
