The Indian rupee edged higher against the US dollar on Tuesday, extending rebound from last week's all-time low of 57.3350, as the latter drifted lower against the euro in the offshore trading.
The USD/INR stayed below the 57.0 mark in the afternoon, retreating to 56.8250 from the day's high of 57.1950. The pair is now hovering around the 57.0 mark.
Reserve Bank of India's measures to prop up the rupee did not produce the expected results. The measures included were raising the limit of foreign investment in government bonds by $5 billion to $20 billion.
Indian shares rose modestly in volatile trading, with weak global cues on skepticism over the outcome of the upcoming European summit capping gains to some extent.
Meanwhile, the global financial services firm Nomura cut India's GDP forecast to 5.8 percent from its previous projection of 6.7 percent for the fiscal year ending March 2013, citing the nation's disappointing public policy.
The firm also cut its economic forecast for 2013-14 to 6.6 percent form the earlier prediction of 6.9 percent.
The benchmark BSE Sensex moved in the range of 16,816-16,947 before ending up 24 points or 0.14 percent at 16,907, with 20 of its components advancing. The broader Nifty index rose by 6 points or 0.12 percent to 5,121.
by RTT Staff Writer
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