Market News
Rupee rallies most in nearly 2 years on heavy central bank intervention - REUTERS
MUMBAI, Feb 11 (Reuters) - The Indian rupee rallied on Tuesday on the back of strong intervention by the Reserve Bank of India, which traders said could deter heavy speculative positioning against the currency in the near term.
The rupee closed 0.7% higher at 86.8275 against the U.S. dollar, logging its biggest one-day gain since March 2023.
The RBI likely sold between $4 billion and $7 billion to shore up the currency on Monday to help it hold above the 88 handle and the intervention continued on Tuesday, traders said. The currency hit its all-time low of 87.95 in the previous session.
The intervention "overpowered the market and led to cutting of long positions (on USD/INR)," a trader at a mid-sized foreign bank said, noting that trading volumes on the day were "quite huge."
