Mumbai: The rupee on 11 May recovered marginally against the US currency to 41.21/22 at the Interbank Foreign Exchange (Forex) market on the back of fresh dollar selling by exporters and banks.
In active trade at the forex market, the Indian unit opened sharply lower at 41.45/47 per dollar against previous close of Rs 41.28/30 a dollar.
But it recovered smartly to 41.18 a dollar on the back of heavy dollar selling by some banks and corporates.
However, it closed the day higher at 41.21/22 a dollar, a net gain of over 7 paise from previous close.
Dealers attributed initial dollar firmness to strong dollar overseas. The US dollar climbed against the euro on Thursday.
According to forex dealers there was intervention from the central bank to stem the rupee’s sharp surge to prevent the exporters’s competitiveness.
The expectation of capital inflow also aided the rupee’s firmness.
Initially, there was some dollar buying from oil refinery companies to meet their import requirements which weighed on the rupee. However, dollar selling by banks in later part of the day helped the rupee to recover smartly.