Indian rupee trims initial losses vs dollar, still down 5 paise

The rupee trimmed its initial losses against the US dollar but was still quoted down 5 paise to 61.57 in the late morning deals on demand for the American currency from banks and importers on the back of higher greenback overseas.

The rupee resumed lower at 61.65 per dollar as against the last closing level of 61.52 at the Interbank Foreign Exchange market and dropped further to 61.71.

However, it trimmed its losses and was quoted at 61.57 per dollar at 1040 hours.

In New York, the US dollar rose against the yen yesterday, coming off a nearly one-month low, as a stronger-than-expected report on US retail sales reassured investors that the Federal Reserve could continue to slow the rate of its bond purchases.

Meanwhile, the benchmark Sensex rose 187.42 points, or 0.89 per cent, to 21,220.30 at 1045 hours.