RBI measures precede rupee recovery to 93.53 per US dollar
The Indian rupee made a solid comeback on Thursday, opening at 93.53 per US dollar, up by 130 paise after hitting a record low earlier this week.
This turnaround happened right after the Reserve Bank of India (RBI) rolled out new measures to steady the currency, just as markets reopened following a two-day holiday.
RBI limits certain foreign exchange contracts
To cool off wild swings and curb unnecessary dollar demand, the RBI put limits on certain foreign-exchange contracts for banks and companies.
As Amit Pabari from CR Forex Advisory explained, these moves are all about stopping artificial pressure on the rupee.
The timing couldn't be better: global oil prices have jumped 5% lately, making things tougher for India's currency.
For now, these RBI actions are expected to help keep things more stable.