Rupee softens 5 paise against dollar in early trade

Mumbai: The rupee was trading lower by 5 paise at 64.96 against the American currency in early trade today at the Interbank Foreign Exchange after the dollar
gained strength overseas.

Forex dealers said that increased demand for the US currency from importers and the dollar's gains against other currencies overseas put pressure on the rupee.

However, a higher opening in the domestic equity market capped the rupee's losses, they said.

Yesterday, the rupee had marched to a new 17-month high to close at 64.91, up 13 paise. This was a level not seen since October 2015, as speculative traders and exporters resorted to heavy selling of the greenback.

Meanwhile, the benchmark BSE Sensex advanced by 63.41 points, or 0.21  per cent, to 29,594.84 in the opening trade today.