Re makes sharp rebound on RBI support
image for illustrative purpose
Mumbai: The rupee bounced back sharply by 75 paise to close at 88.06 (provisional) against the US dollar on Wednesday, posting its biggest intraday gain in nearly four months, due to likely intervention by the RBI and a surge in the domestic markets. Forex traders said domestic markets surged nearly 0.70 per cent on optimism over trade talks between India and the US, which reflected in the USD/INR pair.Moreover, a weak US Dollar and an overnight decline in crude oil prices also supported the rupee.
At the interbank foreign exchange, the rupee opened at 88.74 against the greenback, and fell below the 88-mark during the session, touching a high of 87.93 per dollar. The domestic unit finally settled at 88.06 against the greenback, registering a rise of 75 paise over its previous close.On Tuesday, the rupee depreciated by 13 paise to close at an all-time low of 88.81 against the US dollar.
“We expect the rupee to trade with a positive bias on overall weakness in the US dollar and underlying strength in the domestic markets,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.
