Indian Rupee Claims to 58.40 vs US Dollar

The rupee fell into the levels of 59 against the dollar on Tuesday before intervention by the RBI through the public sector banks pulled the domestic currency back to close at 58.40. Its an another record down 25 Paise form its previous close.

RBI also ordered all the exporters in SEZ to repatriate full value pf exports within a period of 12 months form the date of export. Earlier there was no time limit for repatriating proceeds of exports form SEZ's Dealers said that although RBI appears to have sold dollars through some public sector banks, there was no major intervention,

The recovery from 58.98 was so swift that it appeared that there was not much of dollar demand at the higher level. There is a view that the rupee has breached its fundamental level while the weakening has been stemmed, it might take some major action for the rupee to reverse its movement" Source TOI. Krishnamoorthy, The treasurer, First Rand Bank said "There is some buzz in the market of a dollar bond by the government. According to bankers, RBI has not come out with sledgehammer measures to stamp out volatility because dollar has been gaining against the currencies globally. Even in other Asian countries like Malaysia, Thailand and Indonesia, there has been a currency rout.