The rupee recovered from the day’s low of 53.51 as the euro gained in the overseas market. However, if euro falls there will be further pressure on the rupee, said dealers.
At 3.15 pm, the rupee was 53.31 against the dollar. The domestic currency had opened at 53.10.
It is mainly the supply and demand that is dictating the rupee’s movement, said the head of treasury of a large public sector bank. “There is no inflow of dollars though demand is strong,’’ he said.
There is no indication of the RBI intervening so far, he added.
The domestic unit could weaken to 54 against the greenback by the end of trade.