The Indian rupee today recovered from its two-week low to end steady at 66.60 against the American currency, inching up by a paisa on the back of mild dollar selling.
Stable overseas environment after an overnight turmoil in currency and financial markets worldwide provided some kind of temporary relief to the rupee, a forex dealer said.
The home currency had plunged to hit a two-week low yesterday spooked by global economic and political headwinds.
The domestic unit commenced firmly higher at 66.53 against overnight close of 66.61 at the Interbank Foreign Exchange (forex) market and strengthened further to touch an intra-day high 66.42 following renewed dollar selling.
However, the Indian rupee trimmed its initial gains on fresh dollar demand from importers and retreated sharply to 66.66, before ending at 66.60, showing a marginal gain of one paise or 0.02 per cent.
In the meantime, the dollar rebounded to trade broadly higher against major currencies amid mounting tensions in the Middle East.
The dollar index, which tracks the world’s reserve currency against a basket of its peers, is up by 0.45 per cent at 99.38.
The stock market flagship index Sensex declined by 43.01 points to close at 25,580.34, while the broader Nifty fell just 7 points to settle at 7,784.65.