Rupee steady in late morning trade

The Indian rupee showed stability against the greenback after moving erratically in early trade in sync with local stocks as well as some dollar buying and selling.

The Indian rupee showed stability against the greenback after moving erratically in early trade in sync with local stocks as well as some dollar buying and selling.

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In a fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed weak at 50.04/05 a dollar from its last close of 50.02/03 a dollar and later moved in a range between 50.13 and 49.96 in the initial thirty minutes of trading.

It was quoted at 50.01/02 a dollar at 1030 hrs.

Forex dealers said the rupee remained under pressure due to continued capital outflows and month-end dollar demand from oil refiners.

It, however, recovered its early losses and was steady around its previous closing level as local stocks showed signs of further recovery, they added.

Foreign institutional investors have pulled out large chunks of their investments in shares of Indian companies in the current year because of the global financial crisis.