The rupee slipped from its initial gains, depreciating by 12 paise to 67.03 against the American currency in late morning deals on sudden bouts of dollar demand from imports and banks amid lower domestic equities.

The domestic unit opened smartly at 66.88 as against yesterday’s closing level of 66.91 at the Inter—bank Foreign Exchange (Forex) market.

It gained further to 66.85, later slipped to 67.04 before quoting at 67.03 at 1045 hrs.

The domestic unit traded in a range of 67.04 and 66.85 during the morning deals.

The dollar index was trading lower by 0.03 per cent at 96.07 against a basket of six currencies in the early trade.

Overseas, the US dollar was mostly mixed against its major rivals in early Asian trade. It extended its gains and scaled a three-week high against the yen after China’s second—quarter gross domestic product and June activity data pointed to stabilisation in China’s economy and bolstered risk sentiment.

Meanwhile, the benchmark Sensex was trading lower by 164.40 points, or 0.59 per cent, to 27,777.71 at 1100 hrs

Rupee value- Early trade

Rupee strengthened for the third straight day, rising 6 paise, to trade at over a fresh one-month high of 66.85 against the dollar on sustained selling of the US currency by exporters and banks amid firm domestic equities.

Forex dealers said sustained foreign fund inflows and weakness in the dollar against some other currencies overseas also supported the rupee.

OnThursday, the local unit had gained 14 paise to end at a fresh one—month high of 66.91 on persistent selling of the American currency in view of firm equities amid a weaker dollar in the overseas market.

Meanwhile, the benchmark BSE Sensex regained the 28,000—mark by gaining 91.36 points, or 0.32 per cent, at 28,033.47 in early session.