Rupee pares early gains, up 14 paise

Erasing early gains, the rupee on Tuesday ended at 53.77 against the US dollar, still 14 paise higher than its last close, after the Reserve Bank cut lending rate and cash reserve ratio (CRR) to perk up economic growth.

The 0.25 per cent cut in CRR will release Rs 18,000 crore into the system, RBI said.

Forex dealers said fresh selling of the American currency by exporters also helped the rupee sentiment.

After the RBI announced a cut in key policy rates, rupee bounced back to a high of 53.54 but soon lost the momentum and settled the day at 53.77, a rise of 14 paise, or 0.26 per cent, from its last close.

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