Rupee snaps two days of fall

The rupee snapped two sessions of falls and recovered from a near two-month low on Tuesday, after the central bank was spotted selling dollars via state-run banks and its governor assured markets that India was better prepared to deal with external shocks. Foreign banks also sold dollars on behalf of exporters, which aided the rupee's gains, traders said. The domestic currency fell as low as 60.55, a level last seen on April 29, prompting the central bank to sell dollars through state-owned banks around 60.49 rupee levels, traders said.

The 8.83 per cent government security maturing in 2023 climbed to Rs 101.47 from Rs 101.14, while its yield moved down to 8.60 per cent from 8.64 per cent. The overnight call money rate finished lower at 8.00 per cent from 8.75 per cent on Monday and its moved in a range of 8.90 per cent and 7.00 per cent.