Rupee off from record intra-day low, RBI meeting eyed

Mumbai, December 15, 2011 : The Indian Rupee recovered from the intraday lows on possible RBI intervention.By the time Indian Equity Market closed the rupee was at 53.86 against the dollar, recovering from the intra-day low of 54.30. All market participants are watching tomorrows RBI meet very closely and any policy action will determine the course of currency movement here onwards. RBI has increased 13 times interest rates in order to curb inflation. Monthly Industrial production number, Quarterly GDP numbers and monthly inflation number are showing sign of a very rapidly slowing indian economy particularly manufacturing activies. Food inflation for the week came at arounf 4% which is at 4 year low. High Base effect is also responsible for such a low number.