Indian Rupee Recovers Some Early Losses Against Dollar

The Indian rupee recouped some of its losses, which incurred after Standard and Poor's downgraded India's long-term rating outlook to "negative" from "stable", at the end of Wednesday's trading.

The rupee that reached a low of 52.75 against the dollar after S&P action, snapped back above yesterday's closing quote of 52.5850 to reach a high at 52.4555. The rupee fell to 52.88 against the dollar on Tuesday, its lowest level since January 6.

Indian shares fell modestly after Standard and Poor's downgraded India's long-term rating outlook to "negative" from "stable" citing the worsening fiscal situation and political constraints for pursuing economic reforms.

There is no need to panic and the government is committed to economic reforms to control fiscal deficit and achieve higher economic growth, finance minister Pranab Mukherjee said, helping stocks recover some of their early losses.

The benchmark 30-share Sensex hit an intra-day low of 17,019 before recouping its loss and ending down 56 points or 0.33 percent at 17,151, while the broader Nifty index slipped 21 points or 0.4 percent to 5,202.