The rupee saw one of the biggest single day gains since 1998, jumping 3.46 per cent to end at 66.55, against the dollar. This was a sharp rally of 2.24 over Wednesday's close, largely on the back of the RBI opening a forex swap window for oil marketing companies.
"On the basis of assessment of current market conditions, Reserve Bank of India has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies (IOC, HPCL and BPCL). Under the swap facility, Reserve Bank will undertake sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank," the RBI has said.
The swap facility has been operationalised with immediate effect and will remain in place until further notice.
Dealers say the measure by RBI is some respite for the falling rupee which otherwise would have hit 70 to the dollar mark in trade. Check rupee rates here