Currency Buzz: Rupee rebounds sharply as RBI steps in to support currency market

The rupee rebounded sharply from a record low level, gaining more thana rupee to 95.64 against the US dollar in early trade on Monday, after the Reserve Bank of India stepped in with several measures to contain volatility in the currency exchange market. The Reserve Bank, on Saturday, announced several measures, including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions, to reduce dollar demand in the spot market and curb speculative positions. These measures are expected to help the Indian currency sustain pressure from elevated crude oil prices and a strong dollar. INR opened at Rs 95.61 per dollar and hit a high of 95.57 so far during the day, its highest in more than a month. Indian shares were fluctuating in early trade on Monday as investors monitored developments in energy markets and reacted to the Reserve Bank of India's latest measures to support the plunging rupee. The NIFTY 50 trades at 22,486.60, down 0.15%, while the SENSEX stands at 72,262.33, down 0.29%.

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