Rupee rebounds 16p, courtesy Govt’s move

Showing an impressive resilience, the rupee bounced back in style after a brief overnight crash and ended higher by 16 paise at 63.88 against the US currency on bouts of dollar selling by exporters and banks. The Government's decision to slash its additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore, estimated earlier, literally brought some much-needed relief for the battered forex market. Moreover, a sharp pull back in crude prices — below the psychological $70-mark a barrel — too supported the rupee recovery momentum amid fresh capital inflows.

The Indian rupee suffered its biggest single-day fall in eight months on Tuesday and endured some turbulent trading across Asian forex region, hit hard by trade deficit worries which widened to a three-year high on higher oil and gold imports. The domestic currency had lost 55 paise, or nearly 1 per cent, to end at a fresh two-week low of 64.04 against the US dollar.