The rupee recovered from the day’s lows on suspected dollar selling by the Reserve Bank of India.
On Wednesday, at 3.45 p.m. the rupee was at 53.86 against the dollar, recovering from the intra-day low of 54.30. It had opened above the 54-mark and had declined to 54.30 on worries of economic slowdown and capital outflows.
Oil companies continued to buy dollars both in the spot and forwards market, said dealers.
Sustained foreign fund capital outflows in view of the fall in the equity market, coupled with a stronger dollar in global markets, mainly affected the rupee value against the American currency, a forex dealer said.
In the New York market, the euro slumped to its lowest level yesterday since January, falling below $1.30 per euro after Italy’s borrowing costs surged in a bond auction amid reinforced worries about the region’s sovereign debt crisis.