Indian rupee logs biggest single-day gain in over 2 years at close

Indian rupee

Indian rupee registered a biggest single day gain in over two years on May 23 by appreciating around 79 paise to close at 85.2188 against the US dollar.

According to the Bloomberg data, the local currency’s biggest gain was seen after November 11, 2022, when it appreciated around 99 paise in a single day.

The local currency today ended at 85.2188 against the US dollar, as compared to 86.0050 against the greenback at previous close.

Dilip Parmar – Senior Research Analyst, HDFC Securities said the rupee experienced its most significant single-day gain since November 11, 2022. This upward movement was primarily fueled by a weaker U.S. dollar and a strong performance in the domestic equity market.

“Additionally, the central bank's efforts to encourage foreign investment in corporate bonds, providing short-duration liquidity, further bolstered the rupee's appreciation,” he added. The local currency opened 4 paise up at 85.97 against the US dollar.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said rupee was volatile today also as it rose from a low of 86.06 to 85.10 with RBI selling dollars, long cutting first at 85.80 and then at 85.50 and lastly small IPO inflows (Hotel Leela and Aegis) taking rupee at 2 weeks high.