Reports emerged on Wednesday afternoon that Prime Minister Narendra Modi will be holding a meeting to take note of the economic situation.
The Indian rupee, on Wednesday, ended the session at 72.19 per US dollar, much higher than the record low of 72.91 it touched during the day’s trade. The Indian currency had ended at 72.69 on Tuesday.
With this, it has posted its biggest single-session rise against the dollar since May 25, according to a CNBC-TV18 report..
The currency also had managed to surpass 72 per US dollar-mark, before settling below it at the time of closing. In fact, it rose Re 1 on an intraday basis when the pullback was underway.
Reports emerged on Wednesday afternoon that Prime Minister Narendra Modi will be holding a meeting to take note of the economic situation and there could be some measures decided over the weekend. That led to a sharp rise in the rupee as well as the market, and buying counters were buzzing across sectors.
Investors may also have been upbeat about trade deficit data for August, which has seen some narrowing for the month at USD 17.4 billion.
The day began on a negative note for the currency after it opened at a record low and extended its levels to an all-time low of 72.92 per dollar. It opened at 72.75 per dollar mark. The fall was mainly due to rebound in oil prices, and capital outflows on the back of worries over global trade war.There was some stability in the bond markets as well, with the ten-year benchmark yield hitting 8.14 percent.