Rupee slightly lower against dollar in early trade

Rupee slightly lower against dollar in early trade

Mumbai: The rupee lost initial gains and was quoted slightly lower against the US currency during morning trade on 4 September 2007 due to dollar demand from banks amid a firm trend in equity markets.

In dull trade at the Interbank Foreign Exchange (forex) market, the local currency resumed better at 40.86/87 a dollar from overnight close of 40.88/89 but later turned weak and was quoted at 40.90/91 per dollar in late morning deals.

Fresh dollar buying by banks and oil refiners weighed on the rupee sentiment even as greenback supplies were expected to be affected following a holiday in the US markets yesterday, forex dealers said.

The Indian currency, however, is expected to remain in a narrow range as it will draw support from rising equity markets and re-emergence of FII inflows into equity.