At 4.12 pm local time, the rupee was trading at 55.90 against the dollar on persistent demand for the American currency from banks and importers.

The dollar also gained strength against other currencies in the overseas markets.

The rupee resumed lower at 55.88 a dollar from Tuesday’s closing level of 55.65 at the Interbank Foreign Exchange (Forex) market.

Sustained demand from banks and importers and higher dollar in the New York market mainly affected the rupee value, a forex dealer said.

The US dollar rose yesterday in New York, pushing the euro to its lowest level since July 30 as, dealers said, the US economic data reduced the chances of Federal Reserve’s easing monetary policy.

(This article was published on August 16, 2012)
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