Rupee loses early gains; down 4 paise at 55.38/$

[prasad]

The rupee reversed earlier losses to gain to 55.42/43 on Monday versus its previous close of 55.33/34 on the back of dollar demand from oil firms in the last days of the month, traders say.

USD/INR may gain towards 55.50 during the session, traders say.

Oil is India's biggest import and demand from oil firms peaks at the end of each month when importers make payments.

"There is heavy demand from oil firms today after the weekend, it being the end of the month. There is also lots of buying seen from state-run banks," a senior dealer with a private bank said.

The currency opened stronger in the early morning trade, in line with a rally in global risk assets, with Asian stocks rallying and the euro approaching a three-week peak versus the dollar.

At 9.03 a.m., the partially convertible rupee was at 55.20/23 to the dollar versus its last close of 55.33/34.

Besides, a higher opening in the equity market also supported the rupee, forex dealers said.

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