Rupee rebounds on government intervention

The Indian rupee rebounded to 57.88 against a dollar Wednesday, after hitting a record low of 58.98 in the previous day, on interventions from the government and the Reserve Bank of India.

The partially convertible rupee was trading at 57.93 against the dollar at 1.10 p.m. after hitting a high of 57.88 in intra-day trade. The intra-day low of the rupee was 58.38 against the dollar.

The Indian currency rebounded Wednesday after three consecutive days of steep fall on intervention from the government and the Reserve Bank of India (RBI).

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the RBI intervened in the foreign exchange markets Tuesday to curb the rupee's slide.

Chief economic advisor in the finance ministry Raghuram Rajan had said Tuesday that market regulator Securities and Exchange Board of India (SEBI) and the RBI would take "warranted" action to control the rupee slide.

"SEBI, RBI and the government are keenly following what is happening and everybody will act when the time comes," Rajan said at a press conference in New Delhi.

The rupee had rebounded by 58 paise to close at 58.40 Tuesday from the record low of 58.98 hit in the intra-day trade.