WSJ: “India‘s rupee rose 3.5% Thursday, erasing most of the currency’s losses in the previous session when it hit a record low, helped by a central bank step to reduce dollar demand in the spot market.
The sharp rupee recovery also pulled local stocks higher, with the Bombay Stock Exchange‘s S&P BSE Sensex index closing 2.3% up at 18401.04 points. On the National Stock Exchange, the Nifty index gained 2.4% to end at 5409.05 points.
The rupee was at 66.55 to the dollar in late Asian trade Thursday, compared with the record low of 68.80 it hit late in the previous session.
The Reserve Bank of India said late Wednesday that it would sell dollars to the country’s three state-run oil refiners through a designated commercial bank, shifting the bulk of the refiners’ demand for dollars away from the open market. Oil refiners are India’s biggest buyers of dollars, which they use to pay for crude-oil imports.”
via India Rupee Gains 3.5%, Pulls Shares Sharply Higher – WSJ.com.
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