Rupee sheds gains as oil firms buy dollars

Is seen holding in 59.90 to 60.30 range during the session

The rupee is trading at 60.22/23 after rising as high as 60.05 in opening deals and largely steady from its previous close of 60.21/22, with dollar demand from oil firms hurting the Indian unit.

 

Traders, however, do not expect the rupee to fall below 60.30 levels as local shares continue to trade stronger, while other Asian currencies are also trading higher versus the dollar.

 

The dollar hovered near a three-week low versus a basket of currencies on Tuesday as US bond yields struggled to pull away from their recent troughs, with moves subdued in holiday-thinned trade.

 

Traders expect the rupee to hold in a 59.90 to 60.30 range during the session with domestic shares being watched for cues on foreign fund flows.

 

The BSE Sensex is currently trading up 0.35%.