Heavy unwinding of long dollar positions by banks and exporters alongside extended RBI intervention in the forex market predominantly helped the up move
A weak dollar in overseas markets also supported the rupee rally with trade largely driven by cautious expectations
Massive funds outflows in the wake of impending US Fed rate hike and a bullish dollar overseas have hit the rupee sentiment
The rupee closed at 68.47 a dollar, from its previous close of 68.75 as the central bank intervened at multiple points
The rupee may touch 70 a dollar or even break the level in the next few days, said most of the 10 currency experts
Rupee hit a record low of 68.87against the US dollar (USD) on Thursday, surpassing its earlier all-time intra-day low of 68.85 hit on August 28, 2013
Last time, the domestic currency had hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013
The Indian currency has shrunk 2.92% since Donald Trump's victory in the US Presidential election earlier this month
The rupee weakened 0.5 per cent on Wednesday, falling for the eighth time in nine days
Imminent higher interest rate environment arising out of the US Fed Reserve's hawkish tone along with heavy capital outflows took a toll on the rupee
Analysts at ICICI Securities expect the rupee to hit 68.1 levels going ahead
Decision to maintain a positive outlook on India's Baa3 rating by Moody's also weighed on the trade on Thursday
However, in late afternoon trade, the rupee slid in line with retreating stock markets and touched an intra-day low of 67.97 per dollar
Benchmark BSE Sensex rose 390.04 points, or 1.43 per cent, to 27,642.57 in early session on Thursday
Even as the volume in the currencies market was less, the dealing rooms of banks were buzzing with activity
Besides, a suspected RBI intervention largely supported the local currency
The benchmark BSE Sensex gained 37 points, trading at 27,867.81 in early trade
Rupee opened at 66.44 a dollar level but was already under some pressure as US dollar strengthened against major global currencies
Increased selling of the dollar by exporters and banks and a higher opening in the domestic equity market supported the rupee
Meantime, Bank of Japan (BoJ) kept interest rates on hold at minus 0.1 per cent