The rupee on Wednesday recovered from early lows to close 10 paise higher at 64.33 against the dollar after the RBI lowered its inflation forecast while keeping the policy rates unchanged. Gains in the stock market, which witnessed foreign fund inflows on net basis, also supported the local currency, dealers said.
Currency traders and speculators mostly cut their exposure to dollar currency futures in the face of UK General Election on Thursday, a forex dealer said. The rupee saw volatile trade in the morning session and touched a low of 64.51.
However, it staged a comeback towards the close to hit a high of 64.29 before ending at 64.33, a gain of 10 paise, or 0.16 per cent.