Re recovers from early dip, appreciates to 49.12/$

The Indian rupee moved in line with the local stocks, which recovered after opening slightly down, at appreciated to 49.12/13 against the greenback today amid hopes of emergence of month-end dollar demand.

Opening weaker at 49.19/20 a dollar from its previous close of 49.14/16 a dollar, the domestic currency later recovered smartly to 49.12/13 a dollar as Asian equity markets remained weak prompting hopes that foreign funds may divert their investments to Indian shares.

Dealers at the Interbank foreign exchange (forex) market said the rupee is expected to remain under pressure as demand from oil refiners is likely to pick up during last week of month.

They said the rupee, however, bounced from its early low of 49.27 against dollar on the back of the central bank's suspected intervention in favour of the Indian unit.

Consistent capital outflows from equity markets also was a major cause of concern.