Rupee Surges 66 Paise to 86.79 Against Dollar, Marking Largest Single-Day Gain Amid Global Currency Market Volatility and RBI Intervention.

Rupee Closes Strong Against Dollar

The Indian rupee closed at 86.79 per dollar on Tuesday, marking a significant gain of 66 paise in a single day, which is the highest increase in recent years. This rise comes after the rupee had dropped to 88 earlier in the week, highlighting the volatility in the currency market driven by global uncertainties.

Market Movements

Trading opened at 87.45 against the dollar and peaked at 86.61 during the day. Analysts noted that the Reserve Bank of India (RBI) likely intervened to support the rupee after it had fallen sharply on Monday. Despite this recovery, there are concerns about the future performance of the rupee due to negative sentiment in the domestic market and ongoing foreign capital outflows.

Expert Insights

Analysts suggest that the rupee may face challenges ahead. Factors such as the strength of the US dollar and trade tensions could exert downward pressure. However, further action from the RBI could provide necessary support. Predictions indicate that the rupee may trade between 86.50 and 87.20 in the coming days.

Global Economic Factors

On the global front, the dollar index, which measures the US dollar against six major currencies, saw a slight decline of 0.01% to 108.18. The dollar’s strength has been influenced by recent trade tensions following the US imposing tariffs on aluminum and steel imports.

Crude Oil and Stock Market Update

In commodity markets, international benchmark Brent crude oil increased by 1.23%, reaching $76.80 per barrel. In the stock market, the 30-share BSE Sensex dropped by 1,018.20 points to close at 76,293.60, while the Nifty fell by 309.80 points, closing at 23,071.80. Foreign institutional investors were net sellers, offloading shares worth Rs 4,486.41 crore on Tuesday.