The paltry 7-paise recovery of the rupee in last trade is set to be short-lived and is set to be battered today the US Federal Reserve saying the bond buying $85 billion worth monthly programme would have to end before the year end, which will lead to FIIs pulling out their money from domestic debt instruments, which in turn would pulverize the rupee more.
In last trade the rupee closed 7 paise higher at 58.71 against the dollar after closing at a life-time low of 58.78 the previous day, sinking a whopping 90 paise to an all-time on massive dollar buying by banks and importers. Forex dealers said fresh selling of the American currency by exporters and hopes that the RBI may take steps to arrest rupee slide helped local currency to recover.
