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Thanks to a step up in supply of dollars from exporters, the rupee recouped some losses.
On Friday, the Indian unit closed at 55.3750 to the dollar against the previous close of 55.64.
At the start of the week the rupee slipped to a new low every day — 55.0350 (Monday), 55.39 (Tuesday), and 56 (Wednesday).
Taking cues from the RBI Governor, Dr D. Subbarao's statement on Thursday that the central bank would do whatever necessary to check the rupee's fall, exporters sold dollars, said a dealer with a public sector bank.
“Following the RBI Governor's statement, there was a sense in the market that there will be a pause in the rupee's depreciating trend. Hence, exporters, nationalised banks and an auto company sold dollars in a big way,” said the dealer.
During the last few days the demand for dollars from oil companies increased as there was not enough supply of dollars. However, on Friday there was enough supply of dollars to take care of dollar demand from oil companies.
The rupee is seen trading in the 54.80-55.50 range to the dollar next week.
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