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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