MUMBAI: The rupee nudged higher on Thursday as companies sold dollars after suspected central bank intervention for the second day in a row following the Indian currency's slide to a record this week. Traders also cut long dollar positions after the central bank raised the ceiling on interest rates for deposits by non-resident Indians and eased rules on overseas borrowing by firms. By 11:05 a.m., the partially convertible rupee was at 52.20/21 per dollar, stronger than Wednesday's close of 52.36/37. It had skidded to an all-time low of 52.73 on Tuesday. "Corporate dollar sales helped the rupee bounce back after opening weaker. The central bank's decision to tweak certain borrowing and deposit norms also seems to be helping," said Vikas Chittiprolu, a senior foreign exchange dealer with Andhra Bank. "I expect the dollar selling to continue through the day. The rupee is likely to trade in a wide range of 51.70 to 52.30 during the day." The rupee, which slumped more than 14.5 percent this year and is the biggest loser in Asia, is expected to remain under pressure in the near term due to a rising import bill, slowing exports and dwindling inflows. "The rupee's recovery today is all sentiment driven. But we need to watch out for the actual demand and supply," said Ashtosh Raina, head of foreign exchange trading at HDFC Bank. The Reserve Bank of India (RBI) on Wednesday raised the interest rate ceiling on deposits held by overseas Indians in both the rupee and foreign currencies, citing market conditions. It also eased overseas borrowing rules for local corporates by raising the ceiling for the interest that the firms can pay. The RBI, which has a stockpile of more than $300 billion in foreign exchange reserves, has been intervening in the market to curb excessive volatility, traders said.

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