Rupee snaps 6-day losing streak; recovers 25 paise to 64.30 Vs dollar
Zee Media Bureau/Ajeet Kumar
New Delhi: The rupee on Friday recovered by 25 paise to 64.30 against the US dollar in early trade on the Interbank Foreign Exchange.
Fresh selling of dollar by banks and exporters amid selective buying in stocks mainly supported the appreciation in rupee.
The sentiment was also boosted after Finance Minister P Chidambaram said yesterday that revival and encouragement of growth will continue to be the focus of the government.
Extending its losing streak for the sixth straight day, the rupee had ended at 64.55 after hitting a fresh low of 65.56 against the US dollar in the previous session.
The rupee is down nearly 16 percent so far this year despite efforts by policymakers to prop it up.
Reeling under the battering suffered by the rupee and markets, Finance Minister P Chidambaram and RBI Governor D Subbarao yesterday sought to assuage investors that there are no capital control measures in the offing and there is no need for panic in markets.
While maintaining that they were not targeting a level for the rupee, both of them said it was undervalued. The RBI will revisit measures to check speculation in forex market once stability returns, they said.
In order to arrest the rupee slide, RBI last week had announced measures such as restriction on Indian firms investing abroad and on outward remittances by resident Indians, triggering talks of return of capital control regime.