Rupee recovers after touching 2-mth lows, ends 7 p up at 54.73

After falling to over two-month low levels in early trade, the rupee today closed seven paise higher at 54.73 against the US dollar on fresh selling of the American currency by exporters and moderate FII inflows.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 54.88 a dollar from previous close of 54.80.

It soon dropped to the day's low of 55.02 on weakness in local stocks and sustained dollar demand from importers.

The rupee got a support over 55-level and it bounced back to a high of 54.70 before settling at 54.73, a net rise of seven paise or 0.12 per cent. In last three trading sessions, it had dipped by 66 paise or 1.21 per cent.

Traders said the rupee was seen sidelining the positive retail inflation and concentrated more on the vulnerable trade deficit data. However, the local currency finally ended up.

Rupee had last touched 55-level on March 4 this year to a low of 55.15.

The Indian benchmark S&P BSE Sensex today tanked by over 430 points or 2.14 per cent while FIIs pumped in Rs 244 crore today, as per provisional data with stock exchanges.

The dollar index was last trading up by 0.04 per cent against a basket of six major global rivals.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "Rupee recovered from its early weakness and snapped its losing streak today despite weak stock market and strong dollar in the international market. Gold importers are taking buying positions in dollar to purchase gold on the occasion of Akshaya Tritiya limited the rupee rise. We expect rupee to trade in the range of 54.60 levels to 55.20 levels in the next trading session.