Rupee recovers slightly from big slump against dollar
23 Sep 2011
The rupee today recovered from a 28-month low against the US dollar, leading analysts to believe that the Reserve Bank of India had intervened by selling the dollar.
The RBI, however, denied any intervention, saying there was no reason for it to intervene yet, and that such intervention would need a change in its policy stance.
The dollar was trading at Rs49.43 late in the session, compared with Rs49.57 late on Thursday. The dollar rose to Rs49.89 during the day, its highest level since 14 May 2009, before subsiding slightly.
Reports quoting Reserve Bank of India (RBI) sources, meanwhile, said the bank, as a policy, does not comment on rupee movements.
But RBI deputy governor Subir Gokarn told CNBC-TV18 in New York, "At this point we do not see any intervention from a rate targeting view. That is something that would reflect a change in policy stance, which we are not doing at this point."
The rupee's fall is fuelling India's inflationary woes, making imported goods, crude oil in particular, more costly. India imports 80 per cent of its oil needs.