Rupee surges 64 paise Vs dollar in early trade on RBI measures
Forex dealers said measures announced by the RBI last night, including hiking the lending rates for banks and sucking up of Rs 12,000 crore to stem the continuing fall of rupee, supported the local currency.
Under the measures announced, RBI raised lending rates to commercial banks 2 per cent to 10.25 per cent making the loans costlier.
The rupee had lost 33 paise, the most in a week, to close at 59.89 against the dollar yesterday on fresh demand from banks and importers amid disappointing industrial production, a fall in exports and higher inflation.
Meanwhile, the BSE benchmark index Sensex plunged by 368.91 points, or 1.84 per cent, to 19,665.57 in early trade today.