Indian rupee gained around 22 paise on December 4 to close above the 90-mark on likely intervention by the Reserve Bank of India (RBI), currency traders said.
The local currency closed at 89.9750 against the US dollar, as compared to 90.4115 at open and 90.1913 at previous close against the greenback.
The rupee hit a fresh record low in early trading Thursday, extending its break below the closely watched 90-per-dollar level, as uncertainty over a crucial US trade deal continued to erode sentiment. Still, analysts say the currency's sharp undervaluation historically tends to attract foreign investors back into local assets, suggesting further downside may be limited.
On December 3, despite the currency hitting record low, the intervention by the Reserve Bank of India (RBI) remain muted.
Moneycontrol has written that the limited intervention suggests a potential surprise in the monetary policy, which would be announced on December 5.
Experts said that the central bank is expected to acknowledge the rupee's depreciation in the monetary policy but may avoid signalling any levels to the currency.
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