Last week, the rupee had fallen 3.8% in its biggest weekly drop since an 11.7% dive in mid-July 1996 Mumbai: The Indian rupee pulled back from near eight-month lows on Wednesday as a firm start to local shares after a sharp slide the previous day lifted sentiment but the dollar’s moves versus majors would be crucial for direction. At 9:03 a.m. the partially convertible rupee was at 47.44/45 per dollar, stronger than 47.71/72 at close on 25 May when it had dropped to 47.75, its weakest since 1 Oct, 2009. Last week, the rupee had fallen 3.8% in its biggest weekly drop since an 11.7% dive in mid-July 1996. Indian shares rose over 1.3% early, tracking gains in Asian peers and Wall Street, after it had slid to the lowest close in 3-“months in the previous session. The euro fell on 26 May, slipping back towards a four-year low against the dollar and an 8-1/2-year trough against the yen as concerns about the health of the euro zone’s banking sector weigh on the single currency. Most Asian currencies were stronger compared to the dollar. The index of the dollar against six major currencies was marginally higher and would be watched for direction, traders said.

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