Rupee recovers from early lows, up 12 paise against dollar

Mumbai, Mar 6 (PTI) The Indian rupee gained 12 paise
after a weak opening against the US currency in late morning
trade Friday on expected central bank intervention to contain
further slide in the domestic unit.

At the Interbank Foreign Exchange (forex) market, the
rupee resumed weaker at 51.83/85 a dollar from its last close
of 51.77/78. But it recovered smartly to 51.65/67 a dollar in
late morning deals.

Dealers said the rupee bounced back from its early lows
on anticipation of the central bank's intervention in favour
of the domestic currency to prevent any further fall amid
sliding stock markets.

The domestic currency also drew support from a fall in
dollar against a basket of major currencies in overseas
markets.

Dealers said sustained FII pull out from domestic stock
markets leading to capital outflows remained the principal
cause of concern in the exchange market.

Meanwhile, inflation fell to a six-and-a-half-year low of
3.03 per cent a day after the Reserve Bank of India cut the
repo and the reverse repo rates by 50 basis points each. PTI
JCG