The Indian national currency is 14 paise higher against the dollar at 55.01 a dollar after it lost most of its gains at the Interbank Foreign Exchange (Forex) market

The rupee opened at a stronger at 54.90 against dollar compared to the earlier close of 55.15. the currency was trading between 55.04 and 54.76 before was at 55.01 a dollar at the time of reporting this morning.

Dealers in the foreign exchange market said that the gains were most due to selling of the American currency by banks and exporters as foreign investors poured-in funds into the capital markets in the country.

They said that the strong domestic stock exchange markets as well as indications from China that the second largest economy in the world is recovering, has helped the rupee gain against the US dollar. The continued inflow of foreign funds helped the currency rise besides several steps by the government to boost the economy. Other factors including, strengthening of euro and other currencies against the dollar and a stable domestic stock market also helped the rupee gain against the US dollar.

Most of the earlier gains were lost as June inflation was lowered to 7.25 per cent, indicating a likely cut in interest rate by the RBI.