Indian rupee pares initial gains in late morning deals

The rupee pared its initial gains to trade lower by 2 paise at 65.04 against the US currency in late morning deals on bouts of dollar buying by banks and exporters.

The rupee opened higher by 7 paise at 64.95 as against yesterday’s level of 65.02 at the interbank forex market (Forex) market.

The Indian rupee had recovered by 9 paise to 64.93 on initial selling of dollars by banks.

The rupee had fallen 28 paise yesterday.

The Indian unit hovered between 64.93 and 65.04 per dollar during morning deals.

Meanwhile, the dollar index was trading steady at 93.51, extending its rebound from Friday’s over two-week low of 92.749. It rose as high as 93.729 last Tuesday.

The dollar held an upper hand against major rivals as investors weigh the possibility that US President Donald Trump will choose a more hawkish Federal Reserve chief than the current chair, Janet Yellen. The BSE Sensex was trading lower by 109.56 points, or 0.34 per cent, at 32,499.60 at 1025hrs.