The Indian rupee recovered by four paise to 54.99 after touching all-time low of 55.07 against the American currency in the late morning trade due to mild selling of dollars by banks following following measures taken by RBI to curb the local currency's fall.
The rupee resumed higher at 54.60 per dollar at the Interbank Foreign Exchange (Forex) market as against the last closing level of 55.03 per dollar.
However, it failed to maintain early gains and declined to all-time low of 55.07 per dollar, before quoting at 54.99 per dollar at 1100 hours.
As the rupee plunged to all-time low of 55.04 against the American currency yesterday, the Reserve Bank imposed restrictions of USD 100
million on "position limit" for forward contracts by banks.
"The position limit for the trading member...bank in the exchanges for trading Currency Futures and Options shall be USD 100 million or 15 per cent of the outstanding open interest, whichever is lower," RBI said in a notification.
It also advised the banks dealing in foreign currency to bring down their trading limits by June-end.
Meanwhile, in New York market, the euro gained ground on Monday, after floating between positive and negative territory, rising from its lowest level against the dollar since January.
Analysts warned, however, that more pressure may be in store due to continued uncertainty over Greece's fate within the euro-zone and jitters over the region's banking system.
