Rupee gains 5 paise on dollar selling by banks

The rupee resumed lower at 51.51/52 per dollar at the Interbank Foreign Exchange ( Forex) market against the last close of 51.47/48. It dropped further to a three-month low of 51.70 on renewed dollar demand from importers amidst weakness in local equity markets.

But, later it recovered to 51.38 per dollar before settling at 51.42/43 per dollar, showing a gain of five paise.

Fresh selling of dollars by banks and exporters in view of weak dollar in overseas markets mainly boosted the rupee's value against the dollar, a dealer said.

In London, the yen rose to a six-week high against the dollar today as concerns grew about worsening debt problems in a number of euro zone economies that may threaten global growth, boosting demand for the safe-haven currency.