Rupee gains 50 paise against U.S. dollar as RBI steps in

The rupee on Monday clawed back part of Friday’s losses by appreciating 50 paise to settle at 89.16 against the US dollar in the spot market as compared with its Friday’s close of 89.66, its historic low. The recovery was aided by likely intervention from the Reserve Bank, forex dealers said.

Dilip Parmar, Research Analyst, HDFC Securities said, “The rupee gained the most among the Asian currencies on likely intervention from the central bank and MSCI index rebalancing related flows. However, the trend and bias remain weak for the rupee amid foreign fund outflows, widening trade deficit and stronger dollar index against the major currencies.”