Rupee rebounds from record low

Mumbai: The Indian rupee climbed on Tuesday after hitting an all-time low during trade, helped by central bank intervention and dollar sales by private and foreign banks.

The partially convertible rupee closed at 50.15/16 per dollar, off a record low of 50.65, 0.3 per cent stronger than its Monday's close of 50.30/32.

"The rupee recovered tracking the stock market," said L. Subramanian, chief forex dealer at ICICI Bank. "There were some flows seen in the market, most of the foreign banks were seen selling dollars."

The main share index is back from sharp early losses of more than 4 per cent, ending down 1.1 per cent after a rise in US stock futures eased selling pressure.

Foreign funds have sold a net $13.6 billion (Dh49.9 billion) worth of Indian shares in 2008, after buying a record $17.4 billion last year.

Dealers said two large private sector banks were seen selling dollars in the market, which helped the rupee rise in late trade. Earlier, the central bank had sold dollars via state-run banks around 50.60 to stem the rupee's slide.

One-month offshore non-deliverable forward contracts were quoting at 50.70/85, weaker than the onshore spot rate.