Rupee up by 17 paise vs dollar in late morning trade

The Indian rupee ruled firm in the late morning trade by gaining 17 paise to Rs 53.92 against the American currency on fresh selling of dollars by banks due to persistent capital inflows from foreign funds into equity market.

The rupee resumed higher at Rs 54.06 per dollar as against the last closing level of Rs 54.09 per dollar at the Interbank Foreign Exchange (Forex) Market and moved up further to a high of Rs 53.86 per dollar before quoting at Rs 53.92 per dollar at 1040 hrs.

Renewed selling of dollars by banks and exporters in view of sustained capital inflows from foreign funds mainly boosted the rupee value against the dollar, a forex dealer said.

However, in New York, the dollar rose against most major rivals yesterday holding to higher ground following a round of upbeat US economic data and as Federal Reserve Chairman Ben Bernanke backed the central bank’s stimulus efforts.

Oil prices rebounded in Asia but analysts said sentiment remains hobbled by fears that deadlock in the Italian elections could derail the euro zone's nascent recovery.

New York's main contract, light sweet crude for delivery in April climbed 19 cents to USD 92.81 a barrel.

Meanwhile, the Indian benchmark Sensex rose by 48.03 pts or 0.25 pct to 19,063.17 at 1100hrs.