The rupee on Tuesday spurted by 54 paise, its biggest single-day gain in more than five months, to close at a one-week high of 71.48 against the US dollar, boosted by positive sentiment over the fiscal situation.
The Reserve Bank’s decision to transfer a record Rs 1.76 lakh crore dividend and surplus reserves to the government revived the rupee, forex traders said.
The US currency losing strength against major global rivals also boosted the rupee sentiment. The US dollar index, which measures its strength against six global peers, dropped 0.18 per cent to 97.90 on expectations that the US-China trade talks will resume soon.
At the interbank foreign exchange market, the rupee opened higher at 71.70 a dollar. It gained further to touch the day’s high of 71.45. The local unit finally settled at 71.48, up by 54 paise -- the biggest single-day gain since March 18, 2019.
The rupee had declined by 36 paise to more than nine-month low of 72.02 on Monday.