Biggest single-day gain for rupee since January 1998

A customer walks past an advertisement for a foreign currency exchange facility at a bank in Mumbai

The rupee posted its biggest single-day gain since mid-January 1998 as the Reserve Bank of India’s (RBI) latest move to shore up the currency by providing dollars to oil firms directly and the relatively aggressive intervention helped.

The partially convertible rupee closed at 66.55/56 per dollar, up 3.46 percent on the day, its biggest single-day rise since January 19, 1998. The unit had closed at 68.80/81 on Wednesday after hitting a record low of 68.85.

The central bank was spotted selling the greenback intermittently during the day, several dealers told Reuters.

On Wednesday, the rupee had dropped 3.7 percent in its biggest single-day decline in 18 years.

 

Source : Reuters.
http://in.reuters.com/article/2013/08/29/markets-india-rupee-dollar-forex-idINDEE97S02H20130829