Rupee gains 55 paise to close at 91.6/$ as RBI intervenes

MUMBAI: The rupee recovered 55 paise to close at Rs 91.6 per dollar on Thursday from Wednesday's close of Rs 92.15 after the RBI intervened through state-run banks in both the non-deliverable forward and spot markets to support the currency.

The rupee opened around the 91 level and traded within an intraday range of Rs 91.40-Rs 91.64 per dollar. Dealers said RBI stepped in through large banks to stabilise the domestic unit after it fell to a record low of Rs 92.3 on Wednesday. Traders pointed to aggressive dollar sales by state-run banks that lifted the currency during the session.

Abhishek Goenka, founder of IFA Global, said, "The currency traded within an intraday range of Rs 91.40-Rs 91.64 per dollar following the RBI intervention, which reportedly sold dollars through state-run banks to stabilise the currency."

He said, "Sentiment improved marginally later in the session after reports that Iran signalled a conditional willingness to abandon its nuclear programme if the United States presents an acceptable alternative proposal. In the near term, the rupee is likely to remain sensitive to crude price movements and geopolitical developments."

Bankers expect the RBI to be a major participant in the forex markets given the geopolitical risks. The rupee touched an intraday high of Rs 91.41 before ending the day at Rs 91.6 per dollar. India's benchmark equity indices rose around 1%. Most Asian stocks advanced while regional currencies traded mixed.

Oil price volatility also influenced the currency as traders tracked developments in the ongoing conflict.