Rupee pares early losses, gains 1 paisa against US dollar

The rupee had closed below the key 68-mark to end at 68.01 per US dollar on Friday, after the country’s trade deficit widened more than expected amid renewed global trade war fears.

The rupee pared morning losses and was trading 1 paisa higher to 68 against the American currency in late morning deals amid bouts of dollar-selling by banks and exporters, despite strength in the greenback.

A one rupee coin is seen in this picture illustration taken in Mumbai April 30, 2012. REUTERS/Vivek Prakash/Files (Reuters File Photo)

The rupee hit a fresh three-week low of 68.16 against last Friday’s closing level of 68.01 at the inter-bank foreign exchange in Mumbai.

Some dollar-selling by banks on behalf of the apex bank curbed the fall in rupee, a dealer said.

Meanwhile, the US dollar rose towards a seven-month high against its major peers in early Asian trade as investors hoped the United States and China would avoid a full-blown trade war, although tensions between the two slowed its gains.

The 30-share BSE Sensex was rangebound in trade on Monday afternoon.