Rupee soars 74 paise to post best day in over two years

THE RUPEE ROSE sharply on Friday to post its best single-day gain in more than two years as worries over US fiscal health and the impact of trade tariffs continued to weigh on the dollar, sparking a rally in emerging market currencies.

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The rupee closed at 85.2125 against the US dollar, up 74 paise, or 0.9%, its best one-day gain since November 2022.

For the week, the currency rose 0.3% as Friday's rally helped it recover from the dip past 86 to the dollar in the previous session.

Persistent dollar sales from foreign banks, likely on behalf of custodial clients, and liquidation of bearish bets on the currency helped the recovery, traders said.

The rupee's Friday move was a "rout" for the bearish bias that had built on the currency earlier in the week, when it failed to hold on to gains, a trader at a Mumbai-based bank said.