The rupee recovered from early lows on heavy dollar selling by exporters in afternoon trade on Thursday, dealers said. Earlier in the trading day, the rupee hit a low of 44.70 per dollar after the Sensex dipped 255.62 points to 17,714.40 on profit booking. However, the rupee recouped its losses later and hit an intra-day high of 44.40 per dollar, at which level, some state owned banks were seen buying dollar again.
Sudarshana Bhat, chief dealer ? foreign exchange, Corporation Bank, said, ?Some foreign players were selling dollar to fund their inward remittances for 3-G auction. Moreover, the news report of China currency revaluation has also put upward pressure on the rupee.? The bidding process of 3-G auction in telecom space, will start from April 9 wherein some foreign players are expected to place their bids.
According to a news report by New York Times, on Thursday, China is very close to announcing a shift in its currency policy wherein there would a ?small but immediate? revaluation of the yuan. ?If yuan is appreciated even a little, it would put further upward pressure on the rupee,? said a dealer from a state owned bank.
India?s bonds fell for the first time in four days as inflation concern prompted some investors to pare holdings ahead of a debt auction tomorrow. The yield on the 6.35 % note due January 2020 climbed eight basis points, to 7.86%.