Mumbai: The rupee recovered from losses after trading in a narrow range Tuesday and closed one paisa higher at 62.30 against the dollar as exporters sold the United States currency, which was stable overseas. Bearish local equities and capital outflows constrained the rupee, a forex dealer said.
The rupee opened lower at 62.40 a dollar from Monday's close of 62.31 and declined further to a low of 62.47 on early dollar demand from importers and weakness in domestic stocks.
Later, it bounced back to 62.29 on late dollar selling by exporters before ending at 62.30, a rise of one paisea.
"Tuesday witnessed some range-bound trading session with markets awaiting inflation data. 62.50 continues to remain a critical resistance during the day," Admisi Forex India said in a note.
The euro firmed up against the dollar after data showed a pullback of euro-zone inflation, helping the rupee to recover some of its early losses. German economic data came in better than expected.
The dollar index, which measures the US currency against six major global rivals, was trading at its overnight closing level. "Rupee traded range bound and ended near Monday's close as dollar index is also trading in a tight range near its previous close," said Pramit Brahmbhatt, chief executive officer of
Alpari Financial Services (India). The government is inclined to keep curbs on gold imports until the end of March this year.