Rupee bounces back from record low, gains 75 paise
On Wednesday, the Indian rupee made a strong comeback, jumping 75 paise to finish at 88.06 per US dollar—its biggest single-day gain in nearly four months, after hitting a record low just a day earlier.
This turnaround was powered by the Reserve Bank of India's (RBI) intervention and a boost in domestic markets, with some help from upbeat India-US trade talks.
A stronger rupee eases import costs
A stronger rupee is good news for anyone worried about rising prices. It helps ease import costs and inflation pressures, especially since India's trade deficit hit $32.1 billion in September and imports jumped 16.6%.
The market felt the positivity too—Sensex climbed 575 points and Nifty went up by 178.
RBI's intervention helps stabilize rupee
The RBI stepped in, selling an estimated amount to keep the rupee from sliding further and to calm speculation.
This move lined up with a weaker US dollar and a small dip in global oil prices, both of which made imports cheaper.
Even with recent foreign investor outflows, optimism around India-US trade helped restore confidence and gave the rupee some much-needed momentum.