Rupee closes at 60.77, gains 11 paise as RBI steps in

The sliding rupee took a toll on the stock markets, with the benchmark BSE S&P sensex plunging over 449 points or 2.34 per cent.

MUMBAI: The rupee plunged to all-time intra-day low of 61.80 against the dollar today, but erased all the losses to end with a gain of 11 paise at 60.77 after RBI is believed to have intervened heavily in the forex market.

The rupee resumed lower at 61.05 at the Interbank Foreign Exchange Market and continued its slide to 61.80 amid dollar demand from importers. Fag-end dollar selling by exporters helped the rupee to recover lost ground and settle at the day's high of 60.77, a gain of 11 paise. The rupee had earlier touched an intra-day low of 61.21 on July 8. 

"Overnight movements in the US affected the rupee in a big way as fears resurfaced that the Fed may soon start tapering its bond-buying programme. The over-reliance on US events is hitting domestic markets," said Dhanlaxmi Bank executive vice-president (treasury) Srinivasa Raghavan.