Rupee Rebounds from Record Low

The Indian rupee gained today, following yesterday’s drop to the all-time low, as the nation’s central bank stepped in, announcing measures to curb the volatility on the foreign-exchange market.

The Reserve Bank of India announced that no company, be it domestic or foreign, may use multiple forward contracts for a single overseas transaction. The central bank also said that it’ll reduce the amount of open positions traders are allowed to maintain overnight. The new rule was announced after markets closed yesterday and took effect immediately. The rupee was in danger of further depreciation as the RBI kept the interest rates unchanged on today’s policy meeting.

USD/INR went down from 53.6450 to 52.8750 as of 9:50 GMT today, while earlier it reached the low of 52.2050. The currency pair touched the record high of 54.3050 yesterday.

If you have any questions, comments or opinions regarding the Indian Rupee,
feel free to post them using the commentary form below.