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The rupee gained against the dollar as it tracked the euro, which strengthened in the overseas market.
The domestic currency saw volatile movement during the day. It opened at 47.64 and touched a low of 47.52 before closing at 47.52, against the previous close of 47.64/65.
“The rupee's movement was very topsy-turvy. There was dollar demand from oil importers but also dollar selling by public sector banks. So, it seems as though the central bank has intervened,” said a forex dealer with a private sector bank.
Any further movement of the rupee will depend on the monetary policy announcement on Friday. If the RBI hikes key rates, it will attract inflows from foreign investors, which will help the rupee strengthen, the dealer said.
The increase in the limit of overseas borrowing for companies to $750 million from $500 million also led some support to the rupee.
In the overseas market, the dollar weakened slightly against the euro, although concerns about the Euro zone continue.
In the forward premia market, the one-year forward closed at 2.59 per cent against the previous close of 2.21 per cent.
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