Rupee closes day at 58.39, up 24 paise from Monday

Persistent dollar demand from importers and banks due to higher dollar in the international market mainly affected the rupee value

After hitting a new low of almost Rs 59 per dollar, rupee strengthened during the trade after Reserve Bank of India intervened in the market.

However, the rupee trimmed its intraday losses and closed the day at 58.39 a dollar, up 24 paisa from Monday's closing.

Rupee is currently trading at Rs 58.42 per dollar at 2.42 pm. It had touched 58.98 at 1.30 pm.

J Moses Harding, head, Global Market and Asset Liability Committee, IndusInd Bank said, “the strategy of RBI is not to sell dollars against the trend which may not be effective.”

“The bearish set up on rupee lost momentum at 58.80 - 59.00 making attractive for exporters and RBI was seen to join the selling spree along with exporters to guide relief correction into 58.43,” he added.   

According to Harding, exporters also sold the dollars to leading rupee to come off from the new low.

With the RBI intervention action below 59.00, the near term trading range is seen for consolidation at 57.90/58.15-58.75/59.00 Harding said.

Monday, the rupee had closed at Rs 58.13 which had breached the 58-mark for the first time in the history.