Forex dealers said increased demand for the dollar from importers also put pressure on the rupee.
The local currency had gained 17 paise to close at three-month high of 66.37 in Wednesday's trade.
The home currency failed to keep momentum going and largely traded in a narrow range with positive bias in the absence of any market moving factors
The dollar was firm against some global currencies.
Profits of India's top listed companies have been growing at a faster pace than those of their American peers, but when it comes to revenue growth, the order has reversed recently. The combined net profit of the S&P 500 companies was up 14.1 per cent year-on-year (Y-o-Y) during the trailing 12 months (TTM) ended December 2023, as against 17.4 per cent profit growth logged by the BSE 500 companies in the same period. This is the second consecutive year of faster profit growth for the BSE 500 companies.
However, the US dollar's strength against other currencies overseas capped the rupee's gain
Tokyo -- the songs Japan, Love In Tokyo and Sayonara from the 1966 Hindi film automatically pop up in the mind -- is buzzing and crowded like any other metropolis, discovers Deepa Gahlot. The modern apartment blocks are built cheek by jowl, so close together that one can open the window and borrow sugar from the neighbour in the next building. One of the fears of the Indian traveller is the unavailability of vegetarian food. Every city and town in Japan has an array of Indian restaurants that serve every variety of cuisine, right from Gujarati to Punjabi to Andhra and Kerala meals.
The rupee moved between 53.90 and 54.25 against the American currency in the morning deals.
Rupee rises by 16 paise against dollar on fresh selling.
Rupee gained on fresh selling of dollars by banks ahead of the RBI policy meeting.
Forex dealers said Euro's weakness against the dollar overseas also put pressure on the rupee.
The rupee had closed flat at 54.85 against the US dollar in Tuesday's trade amid RBI keeping key rates unchanged in the mid-quarter policy review.
At interactions last week with senior officials from the Reserve Bank of India, select banks gave feedback on two key bond market concerns, namely, recent volatility in the rupee-dollar exchange rate and heavy losses incurred on floating rate government bonds due to a demand-supply mismatch, sources told Business Standard. The discussions were held ahead of the RBI's next monetary policy statement, scheduled on August 5. Indian banks are large holders of government securities because of a regulatory mandate to set aside a certain percentage of deposits in sovereign bonds.
The rupee had last ended at 53.50 on February 8, 2013.
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The rupee had gained 5 paise to end at 55.62 against the dollar on selling of the American currency by exporters in Wednesday's session.
A higher opening in the domestic stock market buoyed the rupee sentiment
Investors are anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over Kashmir issue.
Forex dealers said besides dollar's gains against euro in the overseas markets on worsening euro-zone debt crisis amid growing fears that Spain may need a full bailout, a weak opening in the stock market also put pressure on the local unit.
Forex dealers said sustained selling of the American currency by exporters and bullish local equity markets buoyed the rupee sentiment.
Forex dealers said some capital inflows and a weak dollar overseas helped the local currency make an attempt to arrest its fall.
The rupee strengthened by 36 paise to 54.48 against the US dollar in early trade today at the Interbank Foreign Exchange on selling of American currency by exporters and banks.
The rupee commenced higher at 55.07 a dollar at the Interbank Foreign Exchange market from last Friday's close of 55.16.
Forex dealers said fresh demand for the dollar also put pressure on the rupee.
The rupee gained 49 paiss on Thursday to end at over 4-1/2-month high of 53.02 against the US dollar on heavy selling of the American currency by exporters and some banks.
The rupee had lost 13 paise to close at 55.66 on Tuesday because of fag-end dollar demand from importers.
Continued dollar offloading by exporters and some banks on hopes further fall in dollar value overseas mainly supported the rupee.
In last three days, the rupee has fallen over 40 paise.
The domestic currency has fallen past the 56-level against the dollar after June 29.
The rupee had ended lower by 19 paise at 56.15 against the dollar on wednesday as importers bought dollars in late trade.
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.
Fresh demand for dollars from banks and importers in view of firm dollar in the overseas market mainly affected the rupee value against the US unit, a forex dealer said.
Even as rupee fell below 56-level against dollar intra-day, Chief Economic Adviser in the Finance Ministry Raghuram Rajan said, there is no need to panic, and RBI takes decisions on whether to intervene in forex markets or not to stabilise the local currency.
The rupee hovered in a range of 53.85-54.24 per US dollar during the day.
Dollar gains against other currencies overseas amid euro zone debt concerns also put pressure on the Indian rupee.
Bouts of dollar demand from importers put pressure on the rupee
The domestic unit had lost 7 paise to close at 66.87 in Tuesday's trade.
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