On wednesday our rupee was down to 10 months low due to demand of dollar from oil and defence industries.
The Reason behind is the central bank director's board Comments.Exporters were also missing from the market largely.
But Exporters and importers are able to cancel and again re-book 50% of their total hedged exposure from the current 25% capital,this was planned by the Reserve Bank of India.
Fron the past couple of days demand for the dollar also more with the defence payments,This will make a stop - loss positions.
"The pressure on INR (to depreciate) is big but I expect June could be a different month, when Unilever funds should hit along with lower demand for gold related FX," he added.
Unilever Plc plans to pay up to $5.4 billion to raise its stake in its Indian subsidiary Hindustan Unilever Ltd The open offer opens June 21 and closes July 4.
Dealers expect these flows to start coming into the domestic market after the first week of June.
The partially convertible rupee closed at 56.17/18 per dollar compared to 55.9550/9650 on Tuesday. The unit fell to as much as 56.37, its lowest since July 25, 2012.
The BSE Sensex fell on Wednesday, snapping a three-day winning streak, as lenders such as ICICI Bank declined on caution ahead of quarterly economic growth data and the expiry of May derivative contracts later this week.
The rupee, which has usually moved in tandem with the domestic sharemarket as foreign fund flows are a key driver for the currency, has so far in 2013 failed to benefit much from the nearly $20 billion worth of inflows into equities and debt.
Traders said a late fall in the dollar versus the yen also supported the rupee's recovery.
The index of the dollar against six major currencies was down 0.6 percent when the rupee closed.
In the offshore non-deliverable forwards, the one-month contract was at 56.53 while the three-month was at 57.11.
In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 56.47 with a total traded volume of $5.50 billion.
