RBI measures, intervention spark rupee's sharpest rally in six months

What happened: The rupee rose 1% to 95.77 per dollar from 96.73 on Friday, its best single day gain since April, after India announced new measures on Saturday to support the currency. Key numbers: 1% gain to 95.77 per dollar from 96.73. Record low 96.96 per dollar. Oil window may remove about $10-12 billion of monthly spot dollar demand. Why it matters: Analysts at ANZ said gradual INR depreciation is likely to resume once the initial impact fades unless BoP pressures ease, and retained a medium-term depreciation view. Traders said the RBI likely intervened via state-run bank dollar sales.

The rupee rose 1% to 95.77 per dollar from 96.73 on Friday, its best single day gain since April, after India announced new measures on Saturday to support the currency.

Analysts at ANZ said gradual INR depreciation is likely to resume once the initial impact fades unless BoP pressures ease, and retained a medium-term depreciation view. Traders said the RBI likely intervened via state-run bank dollar sales.