The Indian Rupee bounced back strongly on Tuesday to reach 59.72 against the US Dollar during the initial trade. Now, it’s trading at 60.12. On Monday, Rupee has closed on 60.61 after touching a new low of 61.10.
The check in Rupee’s fall and sudden recovery, were attributed to the measures taken by the RBI and SEBI. They announced steps to curb speculative trading in foreign exchange derivatives.
The RBI had banned banks from indulging in proprietary trading in domestic currency futures and the exchange-traded options market. On the other hand, the SEBI had increased the margin requirement on the domestic dollar-rupee forward trade to 100 per cent of the traded amount.