Mumbai: The Indian rupee recovered from the day’s lows to trade at 61.19 per dollar at 12:30pm on Tuesday, stronger than its Monday close of 61.2750/2850.
The Indian currency had fallen to as low as 61.66 earlier in the session, not far from a record low of 61.80 reached earlier this month.
Traders say good dollar selling by foreign banks and state-run banks was seen helping the rupee.
The equity markets were also trading up nearly 1%. The market, however, continues to be sceptical of the government’s ability to attract foreign fund inflows and contain the current account deficit at 3.7% of the gross domestic product (GDP), as outlined in its latest measures to shore up the rupee.
Traders await details on the import restrictions on non-essential items, details of overseas borrowing liberalization and non-resident Indian deposit schemes for direction.
The wholesale price data for July, due to be published on Wednesday, will be crucial after factory output contracted more than expected in June while retail price inflation remained high in June. Reuters
