Rupee trades higher at 52.94 after RBI's intervention

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Rupee trades higher at 52.94 after RBI's intervention
The Indian rupee was seen trading at Rs 52.94 per dollar after the Reserve Bank of India (RBI) intervened and imposed restriction on forward trading and banks. The RBI's move to put restriction was to control speculative positions under control.

The Indian currency has been depreciated over 20% during this year, the same depreciation was seen past in June 2009.

The rupee jumped more than 2% today, right after the RB I's move, which is the biggest single-day rise since two years.

However, the rise in rupee was also supported by the dollar weakness abroad. On the Interbank Foreign Exchange rupee resumed higher at Rs 52.91 per dollar against Rs 53.64 per dollar previous close.

Forex dealers told PTI “The sharp recovery of the rupee was due to restrictions imposed by the RBI on forward trading in the local currency by FIIs and traders, besides the cap fixed on banks' exposure to the forex market.”

On Friday, the Reserve Bank of India has kept interest rates unchanged in its mid-term monetary policy review.

Meanwhile, the BSE benchmark Sensex was up by 166 points at 16,001 in afternoon after RBI's decision.

Read more about: rbi, dollar, forex, currency
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