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The Indian rupee slipped to a three-month low at the start of trade on Monday but quickly recovered some ground as exporters sold dollars, traders said.
The rupee, which analysts say is overvalued by 7.6 percent on a trade-weighted basis, was trading at 44.7050/7150 per dollar at 0445 GMT, weaker than Friday's close of 44.6850/6950. It hit 44.7500 in early trade, its weakest since January 6.
"There was selling at above 44.70 levels as exporters entered the market selling dollars," said a trader with a state-run bank.
Volumes in India's $16-billion-a-day foreign exchange market were expected to return to normal after workers from the State Bank of India called off a week-long strike.

Copyright Reuters, 2006

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