Market News
Back-to-back heavy central bank interventions lift Indian rupee past 87/USD - REUTERS
MUMBAI, Feb 11 (Reuters) - The Indian rupee rose sharply on Tuesday, aided by the central bank's heavy-handed intervention, which also triggered stop losses for speculators betting against the currency.
The Reserve Bank of India had also intervened heavily on Monday to support the rupee, traders said.
The rupee rose to as high as 86.69 in early trading before trimming its gains to last quote at 86.89 as of 11:15 a.m. IST, up 0.7% from its previous close of 87.4750.
The Reserve Bank of India sold dollars before the open of the local spot market, via state-run banks, which persisted after the market opened, traders said.
The intervention "is surprising and has triggered a blood bath for longs (on USD/INR)," a trader at a private bank said.
The rupee's sharp rise likely prompted traders to exit long positions on the dollar-rupee pair, adding to the currency's tailwinds.
