The rupee today recovered from early losses against the American currency and ended marginally higher by 3 paise at 67.17 on mild dollar selling by banks and exporters.
The domestic currency largely shrugged off the high volatility in stocks and rebounded sharply towards the fag-end trade following bout of dollar selling by exporters and also aided by greenback’s weakness against some currencies overseas, a forex dealer said.
Moreover, the ECB rate decision later in the day largely focused on trade.
The rupee resumed a tad lower at 67.22 as compared to Wednesday’s closing value of 67.20 at the Interbank Foreign Exchange (Forex) market and dropped further to hit an intra—day low of 67.27 on sustained dollar demand.
However, the home unit staged a solid rebound towards the tail—end trade in the face of smooth dollar supply and managed to settle higher by 3 paise, or 0.04 per cent, at 67.17.
It had finished 10 paise lower yesterday.
The US dollar index, which hit a more than four-month high on Wednesday, was down by 0.10 percent at 97.06 in early trade.
The RBI fixed the reference rate for the dollar at 67.2035 and euro at 74.1523.
In cross—currency trades, the rupee declined further against the pound sterling to finish at 88.51 as against 88.42 yesterday, but held virtually steady against the euro at 73.98.
The local unit, however, fell back against the Japanese yen to close at 63.22 per 100 yens from 63.07 earlier
Meanwhile, the BSE index plunged 205.37 points or 0.74 per cent to 27,710.52.