Rupee remains volatile

MUMBAI, February 4: The spot rupee was volatile on Wednesday as the State Bank of India (SBI) continued to buy as well as sell dollars at the interbank foreign exchange market. Opening at 38.71/75 unchanged from Tuesday’s close the rupee weakened to 38.77/78 in early morning trade. But just as the rupee was about to breach the 38.80 level, the SBI began to sell dollars on behalf of the Reserve Bank of India.

This saw the rupee appreciate to 38.60/62 level where it stayed for sometime. But sustained demand from corporates saw the rupee losing ground once again and trade at 38.68/70. "At this level, the SBI bought dollars on behalf of its corporate clients," a dealer in a private sector bank said. As a result, the rupee touched a low of 38.80 before recovering to close at 38.70.