RBI introduces measures to support rupee, currency surges 1% for biggest gain since April

The Indian rupee hit its largest monthly gain in six months after the Reserve Bank of India unveiled its strongest intervention package since the 2013 taper tantrum. On Monday, the rupee appreciated 1%, trading at 95.7575 per dollar, marking its biggest rise since April. One-month USD/INR non-deliverable forwards initially fell 0.8%. Bond prices declined as yields on benchmark 10-year government bonds rose five basis points to 7.35%, the highest level since November 2023. Following the rupee approaching a historic low near 97 per dollar, the RBI announced measures to support the currency on Saturday. These include establishing a dedicated window to meet dollar needs for state-owned oil companies and imposing reserve requirements on certain foreign exchange derivatives. The central bank raised rates on Wednesday and signaled readiness for further tightening. (Sina Finance)