Rupee bounces back from record-low close

The rupee on Monday recovered from an all-time closing low to end 22 paise higher at 60.88 against the dollar, amid fresh selling of the US currency by banks and exporters, and inflows of foreign capital into stocks. The rupee resumed higher at 61 a dollar from Friday's close of 61.10 at the Interbank Foreign Exchange Market and moved up to 60.72.

However, the early gains were trimmed and it ended at 60.88, a gain of 22 paise, or 0.36 per cent, on some demand from banks and importers as the US currency strengthened abroad. The rupee had lost 70 paise, or 1.16 per cent, in the previous two sessions. Monday's gain was the most since July 24, when the local currency added 63 paise to close at 59.13.

Foreign institutional investors purchased a net Rs 283.8 crore of shares on Friday, according to provisional figures issued by the stock exchanges. The benchmark Sensex gained 18.24 points, or 0.1 per cent, to 19,182.26. The gains were capped as a survey showed India's private sector activity contracted for the first time in over four years in July.