Forex update: Rupee recovers from 9-month low, ends at 61.94 against US dollar

The rupee on Thursday slumped to a nine-month low of 62.25 against the dollar but recovered marginally to end at 61.94 against the Greenback on suspected selling of the US currency by state-run banks on behalf of the Reserve Bank of India (RBI) and mild recovery in stocks.

The privous low logged by the Indian rupee was at 62.45 against the American unit in mid-session of February 20, 2014.

Sustained capital inflows, although in small lots in the last couple of days, also helped the domestic currency to recover some lost ground but a stronger dollar overseas capped the rise in the rupee, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the rupee commenced lower at 62.03 per dollar from its previous close of 61.96 on Wednesday and dipped to a nine-month low of 62.25 on strong dollar demand from oil companies.

The local unit managed to rebound and settle at 61.94 for the day, snapping the 5-session losing streak.

The rupee had lost 45 paise or 0.73 per cent in last five consecutive sessions.

Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee traded weak... Made nine-months low, taking cues from weak local equities and strong dollar. It appreciated towards end due to RBI intervention through state-owned banks."

Among other overseas currencies, the rupee recovered slightly against the pound to 97.10 and recouped to 77.64 per euro. The domestic unit, however, remained firm to close at 52.46 per 100 Japanese yen from 52.68.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) index Sensex snapped its two-day falls and closed 34.71 points (or 0.12 per cent) higher.

Forign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) bought shares worth US $36.95 million on Wednesday, as per data provided by the Securities and Exchange Board of India (Sebi).

The dollar index was up by 0.10 per cent against its major global rivals. The benchmark six-month premium payable in April ended at 205-207 paise as against 208-210 paise previously.

Forward contracts maturing in October, 2015, closed at 426.5-428.5 as against 429-431 paise on Wednesday.

The Reserve Bank of India (RBI) fixed the reference rate for dollar at 62.10 and for the Euro at 77.91.