RBI steps in to bring down rupee

After a gap of almost three months, the Reserve Bank of India has intervened in the foreign exchange market for the second consecutive day today, pulling down the rupee to 43.7350/7450.

According to market dealers, the central bank has bought about $150-200 million in two trading sessions.

The rupee has slipped by 34 paise after hitting a 5-year high of 43.40/42 last week. The upward move was triggered by international rating agency Standard and Poors' raising of India's foreign currency rating.

Most of the Asian currencies are losing to dollar but the rupee had been gaining ground on the back of foreign exchange inflows and hence RBI has stepped in, sources said.

Sources said the real effective exchange rate of the rupee is at around 104.5 now, as against the guarded band of 98-102.