Rupee Enjoys Biggest One-Day Gain in 15 Years on RBI Intervention

India’s beaten-down currency showed on Thursday that it hasn’t given up the fight, staging it’s biggest one-day gain for over 15 years on central bank intervention.

The rupee hit a session high of 66.55 at around 1 p.m. London time from a low of 67.84 against the dollar in Thursday’s trading session. The one-day surge of around 3.46 percent was the best performance for the rupee since January 1998.

Reuters news agency cited several traders that had seen the central bank shoring up the troubled currency on Thursday. It reported that the Bank had been providing dollars directly to oil firms, as part of attempts at currency intervention.

Concerns over the moderation of the U.S. Federal Reserve’s bond-buying program have hurt emerging markets across the globe as investors pull money back to the U.S.

India is just one of many countries that relies on these foreign inflows and “taper” fears have caused the currency to plummet against the dollar.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu