Rupee recovers from all time low amid RBI intervention

Supported by firm local equity markets, Indian rupee bounced backed from early trade’s all-time low of 55.09 against dollar following improved global risk appetite and RBI initiatives. However, on Monday RBI has conserved the window for foreign-exchange dealers to participate futures and forwards markets off each other by imposing restrictions. Central bank’s intervention in the currency market to limit further fall helped rupee to recover from its record lows. Meanwhile capital outflows and dollar demand from banks and importers capped rupee gains. Euro lost some ground against dollar ahead of meeting of European Union leaders later today.

The partially convertible currency is currently trading at 54.95, stronger by 9 paise from its previous close of 55.04 on Monday. It has touched a high and low of 55.07 and 54.65 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.68 and for Euro it stood at Rs 69.86 on May 21, 2012. While, the RBI's reference rate for the Yen stood at 69.02, the reference rate for the Great Britain Pound (GBP) stood at 86.5245. The reference rates are based on 12 noon rates of a few select banks in Mumbai.