However, heavy outflow by foreign funds from equities worth about Rs 3,850 crore crore in two sessions and firm dollar overseas restricted the rupee rise, forex dealers said.
Yesterday, rupee touched life-time low of nearly 60-level intra day after US Fed's stimulus exit strategy spooked global markets.
"Some amount of corporate inflows was seen today," said Ashtosh Raina, Head of Forex Trading, HDFC Bank.
"There was intervention by RBI in market, which helped the sentiment. Trading of European market, US Dow trends and domestic market performance also supported the currency," said Hemal Doshi, Chief Currency Strategist, Geojit Comtrade.
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The rupee commenced lower at 59.74 a dollar from previous close of 59.57 at the Interbank Foreign Exchange market and declined further to a low of 59.80. Later, it pulled back and jumpded to a high of 59.13 before concluding at 59.27, showing a rise of 30 paise or 0.50 per cent.
"A pullback was always on the cards for rupee after what we saw last few days," said Mohan Shenoi, president of Group Treasury & Global Markets at Kotak Mahindra Bank.
At New Delhi, Chidambaram emphasised that the government was "watching the situation" and RBI will take "whatever action it has to take".
The Indian benchmark S&P BSE Sensex today recovered its initial losses and closed up by almost 55 points, after tanking over 526 points yesterday as Fed's decision of slowing down bonds purchase from this year scared markets.