NEW DELHI: The Indian Rupee saw its biggest single-day gain in nearly 13 years on Thursday, closing at 93.10 against the US dollar, as authorities stepped up efforts to curb currency speculation.
The sharp rally came after the Reserve Bank of India tightened rules in both domestic and offshore markets.
"The move was largely driven by improved risk sentiment following US President Donald Trump’s speech, which hinted at negotiations rather than escalation, triggering a relief rally. However, uncertainty remains elevated, keeping volatility high in currency markets, " an analyst explained.
The rupee surged as much as 1.7 per cent to 93.25 during the day, marking its strongest rise since September 2013, as trading resumed after a three-day holiday break.
The central bank recently barred banks from offering rupee non-deliverable forwards to both resident and non-resident clients, and also restricted companies from rebooking cancelled forward contracts.