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Indian rupee recovers from 57-level, ends 11 paise lower

The rupee had resumed lower at 56.80 a dollar and immediately touched a low of 57.00 - a level not seen since June 28, 2012. It recovered later to end the day at 56.84, a fall of 11 paise, or 0.19 per cent.

BT Online Bureau   New Delhi     Last Updated: June 6, 2013  | 21:10 IST

The Indian rupee closed at an 11-month low against the US dollar, declining by 11 paise against the Greenback on sustained dollar demand from importers and some banks.

However, a weak dollar overseas amid capital inflows capped the rupee fall to some extent.

At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 56.80 a dollar from previous close of 56.73 and immediately touched a low of 57.00 - a level not seen since June 28, 2012, when it had touched an intra-day low of 57.10.

Later, the rupee recovered some ground on dollar selling by exporters to a high of 56.7850 before concluding at 56.84, still showing a fall of 11 paise or 0.19 per cent. The rupee had plunged by 29 paise, or 0.51 per cent, on Wednesday.

Pramit Brahmbhatt of Alpari financial Services (India) said: "The Indian rupee traded 11 month low and touched the 57 level convincingly taking cues from weak equity. But the dollar index traded weak which restricted the rupee fall. The Reserve Bank of India (RBI) may decide against cutting interest rates this month which will help the rupee to find its direction. Rupee has depreciated 5.2 percent since the start of May till yesterday and has become the worst performer in Asia over this period. The trading range for the Spot USD/INR pair is expected to be within 56.70 to 57.20."

The dollar index was down by 0.22 per cent against a basket of six major currencies.

Meanwhile, the BSE Sensex declined by 48.73 points, or 0.25 per cent, while FIIs infused 88.49 crore on Wednesday, according to provisional data with stock exchanges.

With inputs from PTI

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