The rupee opened sharply lower at 67.91 against yesterday’s closing level of 67.25 at the Interbank Foreign Exchange (forex) market and went down further to 68.22 on initial heavy dollar demand from banks and importers.
But intervention of the Reserve Bank (RBI) coupled with rebound in equities meant the domestic unit recovered to 67.78 before ending at a 4-month low at 67.96, a loss of 71 paise, or 1.06 per cent — its biggest single-day fall since August 24, 2015.
The rupee had last ended at around this level — 68.42 — was on February 29.
The domestic currency hovered in a range of 67.78 and 68.22 during the day.
The dollar index was trading up 2.80 per cent against a basket of six currencies in the late afternoon trade.
RBI fixed the reference rate for the dollar at 68.01 and euro at 75.10.
In cross-currency trades, the rupee recovered sharply against the pound sterling to finish at 93.13 from 100.20 yesterday and also rebounded against the euro to settle at 74.80 from 76.57.
The rupee fell against the Japanese yen to 66.26 per 100 yen from 63.61.
PTI