Mumbai: The rupee erased its early gains to slip 6 paise to 72.65 against the US currency in late morning deals following fresh bouts of dollar demand from importers and banks.
The rupee opened positive at 72.50 against Thursday’s closing level of 72.59 a dollar at the interbank foreign exchange market here.
The domestic unit rose further to 72.49 supported by government measures to reduce import duties on some products, though a sharp rebound in US dollar overseas once again brought back volatility.
The unit hovered between 72.49 and 72.66 during morning deals, quoted at 72.65 at 1020 hrs.
Overseas, the US dollar stood firm against its peers in Asian trade, hovering near a nine-month high versus the yen, after data reinforced upbeat views about the US economy and backed the Federal Reserves signal for a steady course of rate increases over the next year.
Meanwhile, the 30-share BSE Sensex is trading slightly higher by 25.82 points, or 0.07 per cent, at 36,349.99 at 1035 hrs.
PTI