The rupee pared its initial gains and was trading weak by 13 paise at 62.21 against the dollar at 2.35 p.m. local time due to fresh demand for dollar from banks and importers.
The rupee gained for the third consecutive day by opening 18 paise higher at 61.90 per dollar against the previous close of 62.08 owing to heavy dollar selling by banks and exporters.
According to a dealer with a public sector bank, large selling of dollar by foreign banks due to offshore inflows helped the rupee post gains.
The Reserve Bank of India had on Thursday relaxed the minimum maturity tenure for banks’ foreign currency borrowings to one year from three years so that they can use the central bank’s swap facility.
