Snapping a four-day losing streak, the rupee on Friday recovered by 19 paise to close at 61.15 against the dollar, in tune with local equities.
Forex dealers said late selling of US currency by exporters and some banks helped the domestic unit to rise.
At the Interbank Forex market, the domestic currency resumed lower at 61.46 a dollar from last close of 61.34 and declined further to a low of 61.62 — a level not seen since August 8, 2014 when it had touched an intra-day low of 61.74.
Forex dealers attributed fall in the rupee value to continued dollar demand from importers, mainly oil refiners to meet their month-end needs as also weakness in local stocks.
Later, fag-end dollar selling by exporters and some banks and recovery in domestic equities pulled it back to a high of 61.00 before concluding at 61.15, revealing a rise of 19 paise or 0.31 per cent. In last four sessions, it had plunged by 53 paise, or 0.87 per cent.
The dollar index was up by 0.14 per cent against its six major global rivals.
“Today rupee traded volatile, in the first half it traded weak taking cues from strong dollar but in the second half local equities which opened on a weak note then recovered and closed in green as global rating agency upgraded India’s credit outlook from negative to stable. This helped rupee to gain and appreciate,” Pramit Brahmbhatt, Veracity Group CEO, said.
In forward market, premium continued its downslide on sustained receipts by exporters.
The benchmark six-month premium payable in February eased to 208—210 paise from last close of 210.5—212.5 paise and far-forward contracts maturing in August, 2015 also declined to 463—465 paise from 466—468 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.5720 and for the euro at 78.4489.
The rupee recovered against the pound to 99.69 from 99.97 previously and also turned positive to end at 56.04 per 100 Japanese yen from 56.15. It, however, remained firm to 77.85 per euro from 77.98.
