Rupee recovers from the impact of Daiichi Sankyo's $3.6-bn stock sale

The rupee has recovered from an over three-month low of 63.15 in early trading today and ended six paise higher at Rs62.85 against the US currency, on dollar selling by banks.

The rupee had fallen to a three-and-a-half month low in early trading today and stocks sank to their lowest in nearly four weeks on concerns about foreign outflows after Japan's Daiichi Sankyo's $3.6 billon share sale in Sun Pharmaceutical Industries.

Daiichi Sankyo began the sale late on Monday, reports quoting sources close to the developments said.

The partially convertible rupee pared some of its earlier losses to trade at 62.85/86 after earlier falling to 63.1550 per dollar, its lowest since Jan. 8.

However, it was not clear whether the entire $3.6 billion in the Daiichi deal would flow out of India or if some of the money would be reinvested with domestic investors, including Sun Pharma.

The rupee had logged its biggest fall of the year yesterday by plunging 55 paise to close at over one-month low of 62.91 against the greenback.

Dealers said a lower opening in the domestic equity markets also weighed on the Indian currency.

They attributed the rupee's fall to dollar gains against other currencies overseas.

Meanwhile, the BSE benchmark sensex fell by 103.90 points, or 0.37 per cent, at 27,782.31 in early trade on Tuesday.