Rupee at 9-mth low

The rupee on Thursday plunged to nine- month low of 62.25 against the dollar but recouped losses to close the day at 61.94 on suspected selling of the US currency by state-run banks on behalf of the RBI and mild recovery in stocks. The previous low for rupee was 62.45 intra-day on February 20, 2014.

Sustained capital inflows, although in small lots in the last couple of days, also helped the rupee to recover some lost ground but better dollar overseas capped the rupee rise, a forex dealer said.

At the Interbank Foreign Exchange market, the domestic unit commenced lower at 62.03 a dollar from previous close of 61.96 and dipped to a nine-month low of 62.25 on strong dollar demand from oil companies.

The rupee managed to stage a recovery and settle the day at 61.94, revealing a small rise of two paise from its previous close, snapping the 5-session losing string. The local currency had lost 45 paise or 0.73 per cent in last straight five sessions.