Rupee pares early gains, up 3 paise against US dollar

Mumbai: The rupee pared most of its early gains, trading slightly higher at 69.88 against the US currency in late morning deals on sustained dollar selling by banks and exporters amid weak dollar overseas.

The domestic unit opened sharply higher at 69.75 against last Friday’s closing level of 69.91 a dollar at the interbank foreign exchange market here.

It domestic currency witnessed volatility and moved in a wide range between 69.65 and 70.00 during morning deals, the rupee was trading at 69.88 at 1030 hrs. Higher local equities lent some support to the rupee, a dealer said.

Overseas, the US dollar’s safe-haven appeal faded against a basket currencies in early Asian trade, after risk sentiment in the broader markets picked up following the speech from Federal Reserve Chairman Jerome Powell.

Meanwhile, the 30-share BSE Sensex is trading higher by 348.00 points, or 0.91 per cent, at 38,599.380 at 1040 hrs.