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 US currency following firm equity markets and a weak dollar overseas.
Fresh dollar selling by exporters and some banks as well as slow down 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%. "On Wednesday, RBI had intervened into the market thus appreciating the rupee from its opening. The same scenario is seen on Thursday 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 1% which further appreciated the rupee."