MUMBAI: The rupee pared its early losses to recover by 14 paise to 63.39 per dollar in afternoon deals on good bouts of dollar selling from banks and exporters.
The rupee opened lower at 63.59 per dollar from yesterday's closing level of 63.53 a dollar at the inter-bank foreign exchange market today.
Later, it fell to 63.62 a dollar before rebounding to 63.50 on dollar selling by banks. It was quoting at 63.39 at 1210hrs.
The domestic unit hovered between 63.62 and 63.36 per dollar during morning deals.
The US dollar extended gains against basket of currencies in early Asian trade, after upbeat US data and supportive minutes from the Federal Reserve’s latest policy meeting helped it shake off recent weakness.
-- Stocks up in afternoon trade-- The benchmark BSE Sensex was trading higher by 101.89 points or 0.30 per cent at 33,895.27 at 1220 hrs on buying in Metal, Capital Goods, Consumer Durables, Finance, Banks and Energy sectors on the back of higher Asian cues.
Oil prices hovering at 2 1/2-year highs on Iran's anti- government protests raising concerns about supplies restricted the stocks' movement in morning trade.
However, gains in Tata Steel, Dr Reddy's, SBI, Coal India, L&T, Asian Paint, HDFC Bank, ITC and Reliance Industries helped the indices to break three-day falling trend.
Losers include Sunpharma 1.36 per cent, Tatamtrdvr 1.31 per cent, Tata Motors 0.82 per cent, Hero MotoCorp 0.63 per cent and Wipro 0.66 per cent.
The broader Nifty was trading above 10,450 level in afternoon trade as 26 of its 50 constituents advanced. The index was up 30.85 or 0.30 per cent at 10,474.05.
Most Asian markets were trading higher as solid economic data from the United States and Germany reinforced investors' optimism.
Tokyo's benchmark Nikkei index rose by over 3 per cent to a fresh 26-year high on the first trading day of 2018, taking a positive cues from US markets. The index sruged 3.26 per cent, or 741.39 points, to close at 23,506.33, the highest since January 1992.