Rupee pulled back from the day's lows after stop losses triggered by likely scattered RBI dollar selling, traders say.
Recovering from a record low of 54.30 per dollar, the local unit settled around 53.80, down about 4% so far this week. A pull back in the main stock index also offers some support.
Still, any further recovery seen short-lived as market players look to establish dollar longs before a policy review on Friday though finance minister Pranab Mukherjee says options for fiscal and monetary measures are "increasingly limited.".
Offshore NDFs indicating further weakness with one-month contracts trading at a 1% discount to the onshore spot rate.
