Rupee washes out initial gains, drops to 56.02 against dollar

The rupee was down despite the weakening of dollar against other currencies in the overseas forex markets.

The rupee resumed higher at 55.80 a dollar after yesterday's closing level of 55.91 at the Interbank Foreign Exchange (Forex) Market.

However, it failed to maintain gains and touched a low of 56.02 at 1040 hrs on renewed dollar demand from banks and importers.

The rupee moved between 55.80 and 56.02 a dollar during the morning deals.

In New York, the euro advanced against the US dollar yesterday after a news report said European Central Bank policy makers would consider buying distressed government bonds in a more currency-friendly way.

 

Meanwhile, the BSE 30-stock index, Sensex was slightly up by 7 points or 0.04 per cent at 1050 hrs.