Rupee trims early losses, still down 39 paise against dollar

In line with the equity market, the rupee trimmed early losses and was quoted down 39 paise to 62.18 against the dollar on demand from banks and importers for the US currency as it strengthened overseas.

The rupee resumed lower at 62.07 per dollar as against the previous close of 61.79 at the interbank foreign exchange market and dropped further to 62.30 before quoting at 62.18 at 1040hrs.

Fresh dollar demand from banks and importers mainly affected the rupee value, a forex dealer said.

In New York, the dollar rebounded slightly against safe-haven currencies such as the Japanese yen and the Swiss franc yesterday, but foreign-exchange action was muted as investors stayed focused on the budget stalemate in Washington.

Crude oil prices edged lower in Asian trade with little progress made in ending the bitter US government shutdown that has sparked fears of a debt default, analysts said.

The 30-share benchmark Sensex declined 36 points, or 0.18 percent, to 19,947.88 at 1045hrs, recovering from a low of 19,826.96.