The rupee had collapsed to a historic intra-day trading low of 72.99 on Tuesday before closing at a lifetime low of 72.98
The rupee is Asia's worst performing currency this year
Government's previous efforts to defend the currency failed to sway markets, investors said.
Also trade war between the US and China impacts a major currency in the Asian region, and therefore that creates an upheaval in the region, he said
The Indian rupee on Friday closed at 71.85, recovering 34 paise from its previous close of 72.19 per greenback
The developments have made analysts cautious, who suggest investors' should book partial profit at the current levels and avoid fresh investment in the markets till rupee and oil prices stabilise
Equity markets rallied after two days of sharp losses on hopes that the Centre will take steps to address the macroeconomic concerns
The rupee collapsed to a lifetime low of 72.91 against the dollar, amid surging crude oil prices and uanabated foreign fund outflows.
The measures will probably include steps to curb the decline in the rupee and oil prices
With the rupee dropping to new lows against the dollar every day, Anup Roy explains two terms - NEER and REER - that have become part of our daily conversation
The six-member monetary policy committee of the RBI will make its next rate decision on October 5
The Indian unit on Monday plunged 71 paise or 0.98 per cent on rising crude prices and a widening current account deficit (CAD).
As global uncertainties escalate, emerging economies like India which are running twin deficits are likely to face heightened financial market volatility
The RBI has been selling dollars to arrest declining rupee, which led to decline in forex reserves from $426 billion in April to $400.10 billion at the end of August
Forex dealers said besides strong demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency
Rupee is not alone in the fall against the dollar
A positive start of local equity market also supported the rupee, dealers said
The currency dropped to a record 71.5750 per dollar on Tuesday
The rupee's rapid fall in August -- its biggest monthly drop in three years -- would indicate that the currency has fallen too far, too fast
Rupee opened at a record low of 71.24 against a dollar, down from its previous close of 71.21