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The rupee trimmed its intial losses, but was still trading lower by 8 paise at 66.18 against the US currency in late morning trade in the midst of sustained demand for dollars from banks and importers.
The Indian unit resumed higher at 66.22 per dollar as against yesterday's level of 66.10 at the Interbank Foreign Exchange (Forex) market.
It hovered in a range of 66.37 to 66.15 per dollar during the morning deals before quoting 66.18 at 1030 hrs.
The dollar index was trading up 0.19% at 94.14 as against a basket of six currencies in the early trade.
The dollar was lower compared with the euro and yen in early Asian trade.
Meanwhile, the benchmark BSE Sensex was trading up by 29 points or 0.11% at 26,061.82 at 1035 hrs.
