Rupee rises 29 paise to 89.89 on RBI intervention

THE RUPEE ENDED higher for second consecutive session on Wednesday on likely dollar sales from state-run banks, which traders said could be on behalf of the central bank, helping reverse the pressure from slightly softer Asian cues.

- DHARAMRAJ DHUTIA

The rupee gained 29 paise, or 0.3%, to close at 89.89, its highest level in a week, after closing at 90.1650 in the previous session. It hit an intraday high of 89.86.

The Reserve Bank of India (RBI) resorted to heavy intervention to support the rupee once again, nine traders said, and that pushed the currency to below the 90-per-dollar mark.

Wednesday's intervention followed a familiar playbook that the RBI used repeatedly last year, when it stepped in aggressively to push the rupee higher, aiming to disrupt one-way moves.