Rupee erases initial losses against dollar; trading at 55.39

The rupee trimmed initial losses against the dollar today and was at yesterday's closing level of 55.39 amid selling of the American currency by banks and good capital inflows.

The rupee resumed lower at 55.72 a dollar on fresh demand for the American currency from banks and importers triggered. Besides, the dollar strengthened against other currencies as well in the overseas market.

However, it recovered to 55.32 later on increased selling of dollars, before quoting at 55.39 at 1040hrs.

It moved between 55.32 and 55.73 a dollar during the morning trade.
In New York, the US dollar extended gains yesterday, pushing the euro to a two-year low.