MUMBAI: The Indian rupee registered its sharpest single-day rise in nearly four months on Wednesday, rebounding from near record lows amid likely intervention by the Reserve Bank of India (RBI) and renewed optimism over the India-US trade negotiations.
The domestic currency climbed as much as 0.9 per cent to 87.9987 against the US dollar during the session — its biggest intraday jump since June 24 — before trimming some gains. On Tuesday, the rupee had slipped to 88.8025 per dollar, close to its all-time low.
Traders attributed the rebound to heavy dollar sales by the RBI in both onshore and offshore markets. Additionally, the central bank acted to stabilise the currency, which has remained largely range-bound in recent weeks as the RBI sought to defend the 89-per-dollar level.