RBI pulls Re back from sub-54 level
The rupee breached the psychologically crucial 54-level against the US currency on Tuesday but recouped losses to end higher at 53.79 on huge dollar selling by the Reserve Bank of India (RBI) to prop up the currency. Intervening aggressively in the forex market, state-run banks, acting on behalf of the RBI, sold $400-$500 million as the rupee touched its second lowest intra-day level of 54.15. It had recorded historical intra-trade low of 54.32 on December 15, 2011.