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Rupee rebounds from record low after central bank intervenes
by Sarah Miloudi on Aug 29, 2013 at 07:52
The rupee has recovered from its record low after the Indian central bank offered dollars directly to oil companies.
A rebound in emerging market currencies more broadly also helped the rupee, though the bulk of the relief came from steps taken by its central bank to remove a key source of dollar demand from the spot market.
Its measure could be worth up to $500 million a day and it acts to cut the downward pressure on the currency, which on Wednesday sank to a 20-year low.
According to Reuters data, the rupee rose as high as 66.8 against the dollar at open. On Wednesday the currency fell 3.1% to 66.31 against the dollar over concerns about the unrest in Syria, with rising oil prices heaping further pressure on top.
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