- Tag results for Dollar
The rupee closed at 72.37, up by 61 paise or 0.84 per cent -- its best single-day gain since March 14, 2017.
The rupee has been caught in a free fall for last few sessions and tagged among the worst performing currencies in Asia having weakened by a steep 13.81 per cent since the beginning of the year.
The rupee had crashed to an all-time low of 72.91 in morning trade tracking higher crude oil prices that increased concerns of widening trade deficit at home.
The rupee on Monday slumped to new record low of 72.67 a dollar in intra-day trade before closing at 72.45, showing a steep 72 paise fall.
Forex dealers said besides strong demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.
The high fluctuation was witnessed during the day as it recorded days high and low at 72.04 and 71.65 respectively.
A major oscillation was seen during an intraday trade as it registered day high and low at 71.94 and 71.64 respectively, they added.
The rupee crashed to a fresh record low of 71.96 against the US dollar in intra-day trade on the back of rising bond yields and crisis in emerging market currencies.
The RBI is expected to have sold dollars at 71.80 rupees per dollar in the local spot forex market to stem a sharp fall in the Indian currency.
Earlier, the rupee resumed higher at 71.43 against yesterday's closing level of 71.58 a dollar at the interbank foreign exchange market here.
The domestic currency had lost 37 paise to end at a fresh lifetime low of 71.58 against the resurgent dollar Tuesday as persistent trade worries and macro concerns continued to proliferate.
Forex dealers said besides strong demand for the American currency from importers, capital outflows too weighed on the domestic currency.
A surge in global oil prices, concerns over US-China trade war and contagion risks from Turkey and Argentina are the factors impacting forex market sentiment.
On Friday, the rupee had plunged by 26 paise, or 0.37 per cent, to a record low of 71 against the US currency due to worsening macroeconomic factors and heavy month-end dollar demand from importers.
So far this year, rupee value eroded nearly 10 per cent, and continued its run as the worst performer among Asian currencies.