The Indian rupee trimmed its initial gains and was down by 2 paise to 63.72 per US dollar in late morning deals on Tuesday on bouts of dollar demand from importers on the back of higher dollar overseas.
The Indian rupee resumed steady at Monday’s closing level of 63.70 at the Interbank Foreign Exchange (Forex) market.
However, it failed to maintain initial gains and was quoted at 63.72 per dollar at 1040 hours on bouts of dollar demand. The rupee hovered in a range of 63.75 and 63.66 during the morning deals.
In the New York market, the dollar surged against the Japanese yen on Monday after a strong reading on US manufacturing activity in May increased the likelihood that the Federal Reserve will raise rates this year.