Rupee rebounds from lifetime lows

Rupee rebounds from lifetime lows
Highlights

The rupee snapped its sixsession losing streak to end 18 paise higher at 7421 against the US dollar Wednesday after the American currency weakened overseas At the Interbank Foreign Exchange Forex, the domestic unit opened higher at 7418 and advanced to 7405 on fresh dollar selling by exporters amid weakness in the greenback against some currencies overseas

Mumbai: The rupee snapped its six-session losing streak to end 18 paise higher at 74.21 against the US dollar Wednesday after the American currency weakened overseas. At the Interbank Foreign Exchange (Forex), the domestic unit opened higher at 74.18 and advanced to 74.05 on fresh dollar selling by exporters amid weakness in the greenback against some currencies overseas.

However, the rupee erased some gains and finally settled for the day at 74.21 - up by 18 paise, registering its first rise after sixth straight sessions of losses. On Tuesday, the rupee tumbled 33 paise to finish at a fresh lifetime low of 74.39 against the US dollar. Traders said a relief rally in domestic equity markets also boosted sentiment. Traders said RBI's decision to inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds supported the recovery in rupee.

Sentiment also got a lift after the SBI, coming to the rescue of cash-strapped NBFCs, Tuesday decided to buy their assets to the tune of Rs 45,000 crore, a move that will provide liquidity support to NBFCs facing headwinds after a series of loan defaults by IL&FS group firms.

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