Mumbai: The rupee erased its early gains but was still quoted higher by 28 paise to 59.77 against the American currency in morning trade on fresh selling of dollars by banks and exporters on the back of persistent foreign capital inflows into equity market.
Weakness of the dollar in the overseas market also boosted the rupee, a forex dealer said. The rupee resumed higher at 59.70 per dollar as against the last closing level of 60.05 at the Interbank Foreign Exchange market and firmed up further to a high of 59.59 before quoting at 59.77 per dollar at 1000 hours. It hovered in a range of 59.59-59.78 per dollar during the morning deals. Banks and exporters preferred to reduce their dollar position on hopes of more foreign capital inflows on the back of strong equity market.
In New York market, the dollar fell against the British pound yesterday as investors looked ahead to two key UK data reports due Wednesday that could determine if the pound takes another run higher to the USD 1.70 level.
