Rupee rises as banks sell dollars

 The rupee gained against the dollar on Tuesday to trade at 54.69/70 versus its previous close of 54.77/78. The rupee had fallen to as low as 54.96 earlier in the session.

Traders said that hopes of foreign direct investment in multi-brand retail getting approved via a vote in Parliament on Wednesday are keeping sentiments for the local currency positive. Gains in domestic shares was seen on Tuesday with custodian banks stepping in to sell the greenback.

Earlier gains were on the back of dollar demand of about $200 million, likely from an IT firm, and it has faded now, traders said.