Rupee recovers after hitting over 10-month low, ends at 62.29

Today's rise helped the rupee snap four days of decline where it cumulatively lost 56 paise

The Indian rupee today fell to over ten-month low of 62.50 against the greenback but bounced back to end at 62.29 on selling of dollars by state-run banks on behalf of the RBI.

The rise today helped the rupee snap four days of decline where it cumulatively lost 56 paise or 0.91%.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 62.45 a dollar from previous close of 62.33. It touched a low of 62.5050 on sluggish equities and month-end dollar demand from oil firms.

However, a sudden gust of dollar selling by exporters and some banks helped the rupee bounce back to a high of 62.26 before settling at 62.29 -- a rise of four paise or 0.06%.

"...Towards the end of the session, rupee recovered from lows of the day on speculation that RBI could have intervened in the market through state-run banks by selling dollars," said Suresh Nair, Director Admisi Forex.

Investors will remain cautious ahead of the India's November CPI October IIP data both scheduled after market today and Federal Reserve's policy meet, which will conclude on December 17, he added.

Meanwhile, the Indian stock benchmark S&P BSE Sensex today dipped further by 251.33 points, or 0.91%.

FPIs had sold shares worth USD 98.58 million yesterday, as per Sebi data.

The dollar index, a gauge of six major global rivals, was down by 0.20%.