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The Indian rupee bounced back from its early near historic low against U.S. dollar in evening deals on Thursday, as the latter fell across the board and the Reserve Bank of India pumped liquidity into the system by purchasing government bonds.

The RBI today injected Rs 12,000 crore liquidity into the system through the purchase of government bonds, aiding to stem losses in Indian currency.

The rupee appreciated to a 2-day high of 73.95 against the greenback, up by 0.8 percent from a near record low of 74.52 hit in morning deals. The rupee is seen finding resistance around the 72.00 region.

Meanwhile, Indian shares closed lower, with the benchmark 30-share BSE Sensex dropping 759.74 points or 2.19 percent to 34,001.15, while the broader Nifty index ended the session down 225.45 points or 2.16 percent at 10,234.65.

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