Mumbai/New Delhi, May 25 (IANS) The Indian rupee strengthened for the second day Friday after hitting a record low of 56.40 against a dollar early this week as the Reserve Bank of India (RBI) intervened in the markets to defend the currency.
The partially convertible rupee strengthened 0.50 percent to close at 55.37 against a dollar. This is the second consecutive day of gains in the value of the rupee as exporters and banks sold dollars on RBI intervention.
The rupee has recovered in the last two days after hitting seven consecutive record lows in the previous seven trading sessions.
However, despite some relief towards the end of the week, the rupee witnessed loss for the eighth consecutive week. This is the second longest losing streak in the value of the rupee, since an 11-week fall that ended in October 2008.
RBI Governor D. Subbarao Friday met Prime Minister Manmohan Singh in New Delhi and is believed to have discussed the issue of volatility in the value of the rupee. Chairman of the Prime Minister's Economic Advisory Council C. Rangarajan, among others, also attended the meeting.
Subbarao had said Thursday that the RBI will intervene in the currency markets to defend the currency as and when required.