Rupee falls to two-year low, recovers

The Indian rupee dipped to its lowest level in over two years against the US dollar in the early hours of trade on Friday, mainly on account of the gaining strength of the American currency, but recovered somewhat a bit on some likely sales by the central bank.

The Indian currency was at 66.88 to a dollar at one point, falling nearly 40 paise in two days on account of selling by foreign funds. But some dollar sales by public sector banks, ostensibly at the behest of the Reserve Bank of India (RBI), cushioned the losses, analysts said.

A spike of over 150 points or 0.57 percent in a key Indian equity market index -- the sensitive index of the Bombay Stock Exchange (BSE) -- also helped the rupee to harden a bit. The currency was quoting at around 66.74 to a dollar around 11.45 a.m.

In early trade, it was quoting at the lowest levels since September 2013.