Rupee snaps 2-day fall, recovers 8 paise against dollar

Snapping its two-day losing trend, the rupee today recovered by 8 paise to close at 63.48 against the US dollar, after plunging to a 4-month intra-day low of 63.77, on fresh selling of the American currency by exporters and some banks.

However, distinctly weak local equities, sustained capital outflows and firm dollar overseas capped the rupee rise to a major extent, a forex dealer said.

Initially, the domestic unit commenced weak at 63.70 a dollar from previous close of 63.56 and moved downwards to log almost 4-month intra-day low of 63.77 -- level not seen since when it had touched a low of 63.79 on December 30, 2014.

Dealers attributed the fall in the rupee value to a host of factors such as sluggish local stocks, continued selling by Foreign Portfolio Investors (FPIs) -- who sold shares worth USD 113.93 million last Friday as per Sebi data -- and firm dollar overseas by 0.23 per cent against its global rivals ahead of the two-days US Fed's policy meeting.

However, later it fell back in the last session on renewed heavy dollar selling by exporters and some banks to a high of 63.46 before closing at 63.48, exhibiting a rise of eight paise or 0.13 per cent.

In past two days, it had tumbled by 74 paise or 1.18 per cent.

In New York, the dollar started the week on the defensive in early trade after more disappointing US economic data reinforced expectations the US Federal Reserve will not hike interest rates any time soon, while concerns about Greece's ongoing debt talks pressured the euro.

Back home, the Indian benchmark Sensex today plunged by 260.95 points, or 0.95 per cent.