Rupee's Biggest Rise in Two Years Sends Bears Scurrying

The rupee has weakened more than 2% since new RBI governor Sanjay Malhotra took office in December

- Bloomberg

India's rupee rallied by the most in over two years on suspected strong intervention by the central bank, catching traders off guard after the currency hit a series of record lows in recent weeks.

The currency gained nearly 1%, the most since November 2022, to 86.6362 per dollar in Asia's best performance on Tuesday. The rupee settled at 86.79 against the US dollar, according to PTI.

The surprise rally "will take out speculative positioning," said Ashhish Vaidya, head of treasury at DBS Bank Ltd in Mumbai. "It's a very smart move by the RBI."