The rupee erased its initial gains and was trading weak by 10 paise at 62 against the dollar at 1.22 p.m. local time on fresh dollar demand from importers.
The domestic unit recovered marginally by five paise to 61.85 against the US dollar in early trade at the Interbank Foreign Exchange market today on increased selling of the American currency by exporters amid sustained foreign capital inflows.
A higher opening in the domestic equity market supported the rupee but the dollar’s strength against other currencies overseas on strong US economic data capped the gains, dealers said.
The rupee had lost 10 paise to close at 61.90 against the US currency in yesterday’s trade.
