RBI intervenes; Rupee gains 74 paise

The Indian rupee gained 74 paise to Rs 52.90 per US dollar in opening trade on Friday after the Reserve Bank of India imposed restrictions on forward trading to check the slide of the domestic currency, which had tumbled to a record low of Rs 54.30 per dollar yesterday.

Dealers said the sharp recovery of the rupee was due to restrictions imposed by the RBI on forward trading in the local currency by FIIs and traders, besides the cap fixed on banks' exposure to the forex market. In addition, a higher opening in the equity market ahead of the RBI's credit policy review later in the day and gains registered by other currencies against the US dollar supported the rupee's rise.

The rupee had gained 7 paise to close at Rs 53.64/65 per dollar on Thursday after witnessing a record low of Rs 54.30 during the volatile session. Meanwhile, the BSE benchmark Sensex shot up by 107.56 points, or 0.68 per cent, to 15,944.03 in opening trade on Friday.