Continuing its steady fall, the rupee approached close to 54-level against the dollar intra-day but recouped on suspected RBI intervention before ending the day at four-and-a-half month low of 53.41/42, a hefty loss of 45 paise.
At the interbank foreign exchange market, the domestic currency had plunged to an intra-day low of 53.47 on sustained dollar demand from importers amid weak equities.
Dealers said the rupee remained bearish due to a slew of reasons and could have declined to sub-54 levels but for Reserve Bank’s intervention. RBI is believed to have asked banks to improve dollar supply. They added that the rupee would touch 54 level in near term.
However, RBI’s intervention in the forex market could not be verified independently.
At the fag end rupee managed to pull back from the day’s lows but still ended at 53.41/42, a steep fall of 45 paise.