Rupee gains 4 paise against dollar

The rupee edged up by 4 paise to Rs 45.33 per dollar in early trade today on mild selling of the American currency by banks amid a recovery in the fortunes of the local equity market.

The rupee resumed slightly higher at Rs 45.34/35 per dollar on the Interbank Foreign Exchange, as against yesterday’s close of Rs 45.37/38, and moved up further to Rs 45.33 per dollar before quoting at Rs 45.35/36 per dollar at 10.30 a.m.

The domestic currency moved in a range between Rs 45.33 and Rs 45.42 per dollar in morning deals.

Mild selling of dollars by banks in view of the uncertainty in the currency market mainly boosted the rupee value, a forex dealer said.

The euro spiked higher, but then receded against the US dollar in the New York market yesterday after the leaders of France and Germany hinted they don’t favor the issuance of bonds backed by the collective euro zone, as some investors had hoped for.