Rupee rallies on hints of steps to curb volatility |
After touching yet another low in the morning session, the rupee rallied by about 1.5% in afternoon trade on Sepy 12 following reports that Prime Minister Narendra Modi will meet top policymakers over the weekend to take stock of the situation. The rupee plunged to 72.92 in the morning — which is an all-time low — compared with the previous close of 72.69 a dollar but staged a strong recovery in the afternoon as it touched day`s high of 71.92. The currency closed at 72.18 to a dollar, gaining 0.7% over it`s previous close. The rupee jumped most in three weeks after unnamed government officials said the Prime Minister would review the economic situation this weekend and announce measures to curb the decline in the rupee and also rising oil prices. Among the measures, out-of-turn-hike in interest rate by the RBI is not ruled out. “So, finally some affirmative statement from the government that PM might decide on some fiscal and monetary steps in an economic review meeting,” said Sajal Gupta, head, forex and rates, Edelweiss Securities.
|
|
|
|