Rupee to dollar: Indian rupee off day's low against US dollar on suspected RBI intervention

Written by Reuters | Updated: May 12 2014, 18:57pm hrs
Indian rupee trading at 59.71/72 versus US dollar against its previous close of 60.02/03 but off the session low of 59.51, on dollar buying by state-run banks that traders say is likely on behalf of the central bank and demand for the greenback from oil refiners.

Traders say the central bank likely started to buy dollars starting at the day's low of 59.51, its weakest level since July 29, to prevent the pair from weakening excessively on the back of foreign fund inflows.

Still, heavy gains in domestic shares to record highs amid optimism of a strong win for the opposition Bharatiya Janata Party are likely to keep pressure on Indian rupee to US dollar.

Traders expect the pair to hold in a 59.45 to 59.85 range during the rest of the session.