The rupee recovered to end marginally firm on Friday with traders eyeing the US currency's fall overseas amid speculation that China might again revalue its yuan. The partially convertible rupee closed at 43.6925/6975 per dollar, off an early low of 43.75, and slightly stronger than the previous close of 43.71/7150.
The local unit rose as high as 43.66 in afternoon trade, but fell later after a denial of a revaluation from the Chinese central bank.
"There was dollar demand from oil firms and importers, which eased in the afternoon on the China rumours. Exporters also sold as the US currency fell abroad. But after the denial, there was some late oil-related dollar buying," said a dealer at a private bank.
The dollar regained ground versus the yen and the euro after a spokesman for the People's Bank of China said: "The yuan's exchange rate is decided by market forces. The issue of a preliminary revaluation or there being a further revaluation does not exist."
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