Indian rupee recovers 7 paise to 68.60 against US dollar in late morning deals

The rupee recovered from early losses, rising 7 paise to 68.60 against the American currency in late morning deals on good bouts of dollar-selling by banks and exporters ahead of key RBI policy meet outcome due tomorrow.

The rupee opened lower to 68.69 from yesterday's closing level of Rs 68.67 at the interbank foreign exchange market here.

It, however, recovered to 68.59 on bouts of dollar-selling by banks, to trade at 68.60 at 1030 hrs.

The Indian unit hovered between 68.59 and 68.70 during morning deals.

Traders are cautious ahead of key central banks' policy outcomes, including that of US Federal Reserve due tomorrow, a dealer said.

Overseas, the US dollar was almost flat against its major peers in early Asian trade, while the yen edged up against the US dollar as investors braced for the highly-anticipated policy decision later in the day from the Bank of Japan.

Meanwhile, the 30-share BSE Sensex is trading lower by 170.01 points or 0.45 per cent at 37,324.39 at 1040 hrs.