Free fall for rupee continued even on Tuesday as the domestic currency dropped further to a historic low of 58.98 on bearish stock markets amid reports of selling of Government bonds by overseas investors to book profits. But, intervention by Reserve Bank of India in the foreign exchange market helped Rupee recover some of its losses and finally it closed 24 paise lower at 58.39.
Experts said RBI's intervention and weak dollar overseas helped rupee to bounce back to a high of 58.24, before settling at 58.39.
"The unstoppable rupee loss saw a halt on Tuesday at 58.99 levels after surpassing all the key levels in just one month. After creating a new low, it recovered almost by 68 paise after the indirect RBI intervention. The RBI's hint of intervention resulted into the selling in the market. However the impact of the same on the rupee seems to be short lived," said Founder & CEO of India Forex Advisors Abhishek Goenka while commenting on the performance of rupee on Tuesday.