India, July 2 -- The rupee erased its early gains and settled 18 paise lower at 95.34 (provisional) against the US dollar on Thursday, as strong dollar demand from importers and corporate hedgers outweighed support from lower crude oil prices.
According to forex traders, the domestic currency opened on a positive note after the US dollar weakened overnight following less hawkish comments from Federal Reserve Chair Kevin Warsh and a decline in crude oil prices. However, the rupee later came under pressure due to foreign institutional investor (FII) outflows and increased demand for the US dollar from hedgers.
In the interbank foreign exchange market, the rupee opened at 94.95 against the US dollar and moved within a range of 94.90 to 95.40...