Rupee recovers in mid-day trading

Dealers say dollar selling on behalf of clients after Indian currency crossed 68 mark gave push for recovery

The rupee recovered in mid-day trading after breaching in morning as some banks sold dollars at attractive levels, breaching 68 to greenback mark.

Dealers said dollar selling on behalf of clients after Indian currency crossed 68 mark gave push for recovery.

The market is expecting new RBI governor Raghuram Rajan to take steps improve sentiments and articulate thoughts on dealing with volatility and economic growth. He is expected to statement later in the day.

In morning RBI issued statement restoring a liberal regime for outward foreign direct investment by Indian corporate.

At 1.50 pm rupee was quoting around 66.96 per dollar, according to Bloomberg data. In early morning, Indian currency opened weak (68.10) on dollar demand from importers coupled with Foreign Institutional Investors (FIIs) exiting from their investments in domestic markets.

Besides that with crude oil prices rising on fears about a potential US military strike on Syria, there are concerns that the current account deficit will rise.