After opening above 56 on Thursday, the rupee retreated from the record lows closing at its highest for the day at 55.64 to the dollar on selling of dollars by banks and exporters.
The local currency touched a low of 56.38 in the intraday trade falling further from the opening trade at 56.20.
“Profit booking by traders triggered a technical correction. The Reserve bank intervened only after the correction,” said a senior treasury official of a public sector bank.
The currency may remain range-bound tomorrow. Also, if the diesel prices are hiked, the rupee may see some appreciation,” he added.
The rupee had closed at 56 against the US dollar on Wednesday after crossing the symbolic 56-mark for the first time yesterday.
The call rates ended at 8.15 for the day after touching a high of 8.35 in the opening trade on Thursday.
The benchmark 8.79 per cent government bond closed at Rs 101.87 after touching a high of Rs 102 in the day’s trade.