The Indian rupee ended stronger for the first time in three sessions on Tuesday after the central bank stepped in to keep the market well supplied with dollars and local oil refiners eased up on their greenback purchases.
The rupee closed at 46.3500/3600 per dollar, 0.13 percent firmer than Monday's one-week closing low of 46.4000/4200.
"The state-run banks which usually intervene for the central bank came in and started selling (dollars) from around 46.45 and that automatically helped ease the pressure on the rupee," a dealer at a state-run bank said.
"Demand (for dollars) from importers also eased in the latter part of the session and that also helped the rupee gain."
Traders said the latest trade data showing a widening in the country's trade deficit in the April-July period had not had much of an impact on the rupee.
Rupee premiums on forward dollars edged up slightly amid a few sell-buy swap deals.
The annualised premium on the six-month dollar ended 6 basis points higher at 2.74 percent.
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