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The rupee had shown a spectacular rally on Thursday and Friday, to jump from a low of as much as 68.81 to the dollar to end last week at 65.70. This was largely on the back of the RBI announcing a decision to open a forex swap window for oil marketing companies.
Dealers say that the rupee might continue to remain volatile through the day until there is clarity on the Federal Reserve decision on asset tapering in Mid September.
Meanwhile, Indian markets were trading firm with the Sensex seeing a smart jump of 250 points on stability in the rupee and short covering.
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