Shock therapy! Rupee stages stunning ₹1 comeback

What happened: The rupee opened at 95.76 to the dollar, up 97 paise from Friday's close of 96.73, after the RBI announced a weekend package of four measures to curb dollar demand. Key numbers: Rupee opened 95.76 vs 96.73 close. Rupee down 6.6% this year. Why it matters: Citi said the package raises the near-term cost of rupee depreciation trades. Kotak Mahindra Bank sees hedging costs rising 1% to 1.6% and said a move toward sub-95 cannot be ruled out, while Nomura noted FX reserves fell about $43 billion since the FCNR(B) window closed.

The rupee opened at 95.76 to the dollar, up 97 paise from Friday's close of 96.73, after the RBI announced a weekend package of four measures to curb dollar demand.

Citi said the package raises the near-term cost of rupee depreciation trades. Kotak Mahindra Bank sees hedging costs rising 1% to 1.6% and said a move toward sub-95 cannot be ruled out, while Nomura noted FX reserves fell about $43 billion since the FCNR(B) window closed.