Overcoming its initial weakness, the rupee on Thursday broke its eight-session-long losing streak closing higher by 9 paise at 47.55/56 against the U.S. currency following firm equity markets and a weak dollar overseas.
Fresh dollar selling by exporters and some banks as well as slowdown in capital outflows too supported the rupee rise.
In an active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened a tad lower at 47.65/66 per dollar from previous close of 47.64/65.
It touched a low of 47.95 in late morning trade following some weakness in local stocks after opening firm.
Later, the rupee bounced back in line with smart rebound in equities and concluded at 47.55/56.
In last eight sessions, the rupee had lost 185 paise or 4.04 per cent.
“Yesterday RBI had intervened into the market thus appreciating the rupee from its opening. The same scenario is seen today and possibility of RBI’s intrusion at near 48-mark cannot be ruled out completely,” India Forex Advisors CEO Abhishek Goenka said.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, “The rupee took cues from global markets where dollar traded weak against the major currencies. Equities were also bullish and closed up by one per cent which further appreciated the rupee.”
The BSE benchmark Sensex, which was down by about 165 points in late morning deals, closed up by nearly 167 points or 1.0 per cent.