Mumbai: Snapping its two-day losing streak, the rupee on Wednesday recovered by 18 paise to 52.50 against the US dollar in late morning trade on fresh selling of the American currency by banks and exporters in view weak global cues.
   
The local unit resumed slightly higher at 52.66/67 per dollar at the Interbank Foreign Exchange (Forex) market as against the last closing level of 52.68/69 per dollar and firmed up further to 52.50 per dollar before quoting at 52.52/53 per dollar at 1030 hours.
   
The domestic currency hovered in a range of 52.50-52.74 per dollar during the morning deals.
   
Fresh selling of dollars by banks and exporters on the back of lower dollar in the New York market boosted the rupee value against the dollar, forex dealers said.
   
In New York, the dollar extended losses against the euro and fell versus other currencies yesterday, after a report on US home prices and consumer confidence came in weaker, raising the stakes for what the US Federal Reserve decides to say and do during a two-day meeting.

During the first four years, rice production would decline by an average of 21 percent and over the next six years the decline would average 10 percent, the study said.
   
This decline in food production would result in increases in food prices, which in turn would make food inaccessible to hundreds of millions of the world’s poorest.
   
Significant agricultural shortfalls over an extended period would almost certainly lead to panic and hoarding on an international scale, further reducing accessible food.
   
An estimated 215 million people would be added to the rolls of the malnourished over the course of a decade even if agricultural markets continued to function normally, the report said.    

"There is an urgent need to reduce the reliance on nuclear weapons by all nuclear weapons states and to move with all possible speed to the negotiation of a nuclear weapons convention that will ban these weapons completely," the report concluded.
   
Commenting on the report, Ambassador Jayantha Dhanapala, former UN Under Secretary General of Disarmament Affairs, said unlike biological and chemical weapons, nuclear weapons have not been outlawed because of "vested interests".
   
Nine countries have 20,530 nuclear warheads among them, with 95 per cent being with the US and Russia. "As long as these weapons exist others, including terrorists, will want them.
   
As long as we have nuclear weapons their use by intention or accident; by states or by non-state actors is inevitable," Dhanapala said adding that total elimination of nuclear weapons through a Nuclear Weapons Convention is the only solution.
   
Former Russian leader Mikhail Gorbachev said use of nuclear weapons in a military conflict is "unthinkable" and to achieve political objectives is "immoral".
   
Noting that nuclear war cannot be won and must never be fought, Gorbachev said the study underscores in "stunning and disturbing" detail why the world must discard Cold War-style plans for the possible use of nuclear weapons and move rapidly to eliminating them from the world's arsenals.

(Agencies)