RBI's surprise dollar sale lifts rupee 38 paise
Business
On Thursday, the Reserve Bank of India (RBI) surprised everyone by selling dollars before markets opened, giving the rupee a much-needed lift.
The currency jumped 38 paise to 90.40 against the US dollar, and even touched 90.14 at one point.
Many traders didn't see this coming—one admitted, "I don't think anyone would have called this."
RBI intervenes to keep rupee stable
With more companies hedging and importers needing dollars, demand was pushing the rupee closer to 91 per dollar despite a recent rally after the India-US trade deal.
To keep things steady, RBI intervened with dollar sales in the spot market.
Add in a big liquidity surplus of ₹3 trillion at home, and you've got extra support helping keep market vibes positive and the rupee stable.