Rupee gains 8 paise vs dollar; snaps 2-day losing string

MUMBAI: Tracking a smart rebound in local equities, the rupee on Tuesday recovered by 8 paise to close at 44.49/50 against the US currency.

Weak dollar overseas coupled with fresh dollar selling by exporters also helped the rupee cut short two-session losing string, dealers said.

In a thin trade at the Interbank Foreign Exchange (Forex) market, the local currency opened slightly better at 44.54/55 a dollar from yesterday's close of 44.57/58.

Later, it was trapped in a tight range between 44.48 and 44.5950 before settling the day at 44.49/50.

"Rupee is unlikely to gain big as underlying mood was guarded before outcome of emergency euro zone summit scheduled for Thursday on Greece bailout," Alpari Financial Services ( India) CEO Pramit Brahmbhatt said.

USD-INR futures moved in thin range today. Rupee opened better but later turned just negative following weakness in the local equities in late morning session. USD-INR gained in afternoon trade as the euro strengthened resulting in a fall in dollar index, he added.

The BSE benchmark Sensex bounced back by 146.83 points or 0.79 per cent after last two-sessions of sell-off.