The rupee failed to maintain initial gains against the American currency by slipping six paise to 58.83 per dollar on renewed demand from banks and importers in view of sustained foreign capital outflows.

The rupee resumed higher at 58.74 per dollar as against the last closing level of 58.77 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 58.62 on selling of dollars by banks on the back of lower dollar in overseas market.

However, it failed to maintain early gains and dropped to 58.91 per dollar on renewed dollar demand from banks before quoting at 58.83 per dollar at 1040 hrs.

It moved in a range of 58.62 per dollar and 58.91 per dollar during the late morning deals.

In the international market, the US dollar slipped against the Japanese yen and the euro in the early trade ahead of highly anticipated guidance from the US Federal Reserve on what it plans to do with its bond-buying programme.

Meanwhile, the Indian benchmark Sensex dropped by 88.42 points, or 0.46 per cent, to 19,134.86 at 1040 hrs.

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