Mumbai: The rupee pulled back from its intraday low on Tuesday afternoon in tandem with the euro’s recovery, though month-end dollar demand from oil importers limited the rupee’s bounce back.
At 2:45pm, the partially convertible rupee was at Rs 44.4900/5000 per dollar after dropping to 44.6225 earlier. It had closed on Monday at Rs 44.485/495.
The euro recovered against the dollar on Tuesday, helped by demand from sovereign investors, with expectations that the US Federal Reserve will keep policy accommodative likely to see it hover near its recent peaks.
The euro had slipped earlier after European Central Bank Governor Jean-Claude Trichet said he shares the view that a strong dollar is in the interest of the United States.
The euro rose to $1.4636 after hitting a session low of $1.4494.
Oil is India’s biggest import item and domestic oil refiners are the largest dollar purchasers in the local forex market.
The index of the dollar against six major currencies was down 0.30% at 73.764 points.
Traders said the US Federal Reserve’s rate decision due at 10:00pm,on Wednesday was also being awaited as the move will impact the dollar, in turn the rupee.