Mumbai : The Indian rupee surged sharply on Wednesday, marking its biggest single-day rise in nearly four months. It rebounded from near record lows as the Reserve Bank of India (RBI) likely intervened and optimism grew over India-US trade negotiations. This marks a notable Indian rupee recovery.
The domestic currency climbed as much as 0.9 percent to 87.9987 against the US dollar during the session — its largest intraday jump since June 24 — before trimming some gains. On Tuesday, the rupee had slipped to 88.8025 per dollar, near its all-time low. Many analysts link this to the ongoing Indian rupee recovery.
Traders cited heavy dollar sales by the RBI in both onshore and offshore markets as a key factor behind the rebound. The central bank also took action to stabilize the currency, which remained largely range-bound in recent weeks while defending the 89-per-dollar level. The Indian rupee recovery appears well on track.
Investor sentiment also rose after reports that India is accelerating efforts to conclude trade talks with the United States by next month. These steps added further momentum to the continuing Indian rupee recovery.
The prospect of a deal, combined with a softer dollar on expectations of US Federal Reserve rate cuts, supported the rupee and other Asian currencies.
Dilip Parmar, senior research analyst at HDFC Securities, said the rupee has demonstrated resilience, consolidating in a narrow range over the past two weeks due to central bank action and foreign fund inflows. He added that spot USD/INR finds support at 88.50 and faces resistance at 89.10.
Meanwhile, domestic equity indices rallied nearly one percent on Wednesday after a decline on Tuesday. Around 1:32 pm, the Sensex traded at 82,672, up 642 points (0.8 percent), while the Nifty rose 205 points (0.82 percent) to 25,352.40.
Earlier in the morning, Indian stock markets opened positively, following upbeat global sentiment. Buyers moved across most sectors, with heavyweights such as Bajaj Finserv, Bajaj Finance, NTPC, L&T, Power Grid, BEL, Bharti Airtel, Trent, and Asian Paints seeing strong action.
–IANS
