INR vs USD: RBI's rupee support move shows results as Indian currency jumps 1% post dollar-demand curbs: Investors guide

What happened: The Indian rupee rose nearly 1% on Monday, 12 October after the RBI redirected oil companies' dollar purchases away from the spot market and moved to curb corporate demand for forward dollars. Key numbers: Rupee opened at 95.76 versus Friday's close of 96.73. It is still down 6.6% this year. Why it matters: Citi economists said the measures could bring initial rupee appreciation followed by consolidation, adding they raise the near-term cost of depreciation trades but do not remove balance of payments pressures.

The Indian rupee rose nearly 1% on Monday, 12 October after the RBI redirected oil companies' dollar purchases away from the spot market and moved to curb corporate demand for forward dollars.

Citi economists said the measures could bring initial rupee appreciation followed by consolidation, adding they raise the near-term cost of depreciation trades but do not remove balance of payments pressures.