Rupee hits fresh record low, recoups to end at 54.42

Written by Reuters | Mumbai | Updated: May 19 2012, 09:06am hrs
The Indian rupee recovered after earlier dropping to its third consecutive daily record low, tracking a recovery in domestic stocks and after central bank deputy governor Subir Gokarn said the Reserve Bank of India would continue to defend the currency.

The rupee also recovered despite the battering of other global risk assets on Friday as it approached the psychologically key level of 55.00, and as traders speculated the RBI was still liable to implement measures after already targeting deposits and exporters foreign currency accounts.

The USD/INR settled at 54.42/44 per dollar on Friday compared to Thursdays close of 54.48/49, according to State Bank of India closing data. The rupee had started the day on a much weaker footing, having hit a new record low of 54.91 earlier in the session, though gains in the main stock indexes after strong earnings from State Bank of India helped the local unit as well.

No actual intervention from the Reserve Bank of India was spotted by dealers on Friday, though traders speculated the RBI could open a window for oil companies to buy dollars directly from the RBI.