The rupee, on Thursday, rose steeply by94 paise to trade below 52 level intra-day after a string of actions by the Reserve Bank of India (RBI), but only to pare some of the gains to close at 53.42 against dollar.
The rupee had a weak opening after closing at all-time low of 53.84 on Wednesday.
It rose to 52.90 level intra-day as there was increased selling of dollar by banks and exporters following RBI measures.
Treasury managers in banks said there was also suspected intervention by the RBI in the forex market.
However, the rupee lost some of the gains and finally settled at 53.42, up by 42 paise over the previous close. “Initially, there seemed to be some kind of intervention from RBI, which we heard from the market. After that the notification regarding the Exchange Earners' Foreign Currency Account (EEFC) came, which lifted the currency,” T. S. Srinivasan, GM (Treasury) of Indian Overseas Bank, said.
Rupee premium for forward dollar declined sharply on fresh receivings by exporters.
The benchmark six-month forward dollar premium payable in October closed down at 160-162 paise against the last close of 172-174 paise.
The RBI fixed the reference rate for the dollar at 53.3375 and for euro at 69.0680. — PTI