The Indian rupee pulled back from three-month lows on Wednesday aided by dollar inflows into some companies, but subdued risk appetite on global growth worries limited the recovery. The pull back in rupee sparked market talk about possible intervention by the Reserve Bank of India, especially as a large state-owned bank was believed to have sold dollars persistently around 51.50 levels, but Reuters could not independently verify this.
The rupee ended at 51.42/43 to the dollar, after hitting a low of 51.64, a level not seen since January 16. It closed at 51.475/485 on Tuesday. "All things are against the rupee - globally and domestically," said A. Ajith Kumar, senior manager of forex trading at Federal Bank. The one-month offshore non-deliverable forward contracts were at 51.41.
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