Rupee sheds initial losses, inches up to 67.34

Currency slides to 67.44 on initial dollar, from last close of 67.36, before reversing all losses and adding 2 paise

The rupee recouped its initial losses against the dollar completely as it gained by two paise to 67.34 on fresh selling of the US currency by banks and exporters.

The rupee resumed lower at 67.43 as against yesterday's closing level of 67.36 at the Inter-bank Foreign Exchange (forex) market and slid further to 67.44 on initial dollar demand from importers.

However, it reversed all the losses and recovered to 67.31 before quoting at 67.34, a gain of 2 paise.

The domestic currency hovered in a range of 67.31 and 67.44 during the morning trade.

The dollar remained flat against the yen and the euro during Asia trade today as investors avoided taking strong positions, settling into a wait-and-see mode concerning the US Federal Reserve's next move.

The dollar has gained traction in recent trade after this week's release of April Fed policy meeting minutes raised hopes for a rate increase soon. The minutes showed that policy setters discussed the possibility of a June rate rise if the economy continued to strengthen.

Meanwhile, the Indian benchmark Sensex moved up by 62.13 points, or 0.24 per cent, to 25,461.85 at 1216 hours.