Besides, the dollar selling by exporters and banks, fresh measures announced by the RBI to curb the rupee's slide and fall in crude prices in the global market, helped domestic currency to rebound, forex dealers said.
They said a higher opening in the equity market also supported the recovery in the rupee, they said. RBI has decided to open a special window to help the three state-owned oil marketing companies, which need about USD 8.5 billion every month, to meet their daily foreign exchange requirement in a bid to check the rupee's free fall.
The rupee had registered yesterday its biggest single-day fall of 256 paise to close at an all-time low of 68.80 against the dollar as global oil prices jumped, deepening concerns about the current account deficit and capital outflows.
Meanwhile, the BSE benchmark Sensex recovered sharply by 178.73 points, or 0.99 per cent, to 18,174.88 in early trade today. PTI