The rupee erased most gains against dollar as banks bought the greenback to meet demand from oil companies and other importers, dealers said. The Indian unit closed at 48.07 to a dollar compared with 48.25 on Monday. It had risen to an intraday high of 47.57 today.
“There was good demand from importers today as the rupee rose sharply,” said a dealer at a state-owned bank. According to dealers, a large private petrochemical company bought around $25 million at 47.70-47.75 to a dollar from a state-owned bank, while they were also said to be selling dollars at weaker rupee levels today.
Another private oil company also bought around $50 million between 47.60 and 47.65, dealers said. Some banks also bought dollars tracking the local share indices that shed most of their gains to end marginally up today, dealers said.