Rupee bounces from 2016 low on RBI support, up 11 paise

The Indian rupee staged a modest recovery from its fresh 2016 low and ended 11 paise higher at 68.65 against the US currency, largely helped by some dollar selling from banks and exporters.
Frantic out-bound foreign capital on expectations of President-elect Donald Trump's higher spending policies and concerns over the recent demonetisation drive had dragged the rupee down to test fresh 2016 lows on Monday.
An extremely bullish dollar overseas against the backdrop of an imminent Fed rate hike in the near term, however, kept sentiment shaky.
The local unit has been witnessing turmoil against the dollar ever since the beginning of this year.

Adequate dollar supplies following suspected RBI intervention through state-owned banks mainly aided the recovery, a forex dealer said.
At the Interbank Foreign Exchange (forex) market, the home currency resumed marginally higher at 68.73, from the overnight closing level of 68.76.

It later moved in a narrow range of 68.62 and 68.78 before settling at 68.65, a gain of 11 paise, or 0.16 per cent.
The rupee yesterday had tumbled as much as 30 paise to end at 68.76.
In worldwide trade, the greenback edged higher against other majors currencies ahead of US GDP data outcome later in the day amid sustained hopes for a December rate hike.

The US dollar index was quoted higher at 101.49 in late afternoon.
Meanwhile, RBI today fixed the reference rate for the dollar at 68.65 and euro at 72.80.
In cross-currency trades, the rupee fell against the pound sterling to close at 85.59, from 85.26.
But it recovered smartly against the euro to settle at 72.76 compared with 72.92 and also bounced back against the Japanese yen to close at 60.96 from 61.22 per 100 yens earlier.