Rupee at 61.89 vs US dollar, up 12 paise

The Indian rupee trimmed its initial gains against the American currency, but was quoted still up by 12 paise to 61.89 per dollar on selling of dollars by banks and exporters ahead of RBI's policy review.

Weakness of dollar in the overseas market also boosted the rupee sentiment, a forex dealer said. The rupee resumed higher at 61.90 per dollar as against the last closing level of 62.01 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 61.84-61.91 per dollar before quoting at 61.89 per dollar at 1045hrs.

In the global market, the US dollar was flat against most major rivals in their early trade, with investors preparing for a decision from the Federal Reserve on what it plans to do with its bond-buying programme.

While many analysts expect there will be no change in the central bank s programme of purchasing USD 85 billion a month in assets, investors will be looking for, at least, some insight about when a tapering of purchases will begin.

Meanwhile, the Indian benchmark sensex rose by 87.36 points or 0.42 pct to 20,699.50 at 1045hrs.