- Tag results for Rupee
Markets will also take global cues from the US Federal Open Market Committee’s (FOMC) decision on interest rates, while developments in the US-China trade war will be closely monitored.
About 67 per cent people participating in an online poll said import duty on gold and diamond should be increased while 37 per cent favoured import restrictions on the same.
The rupee is the worst performing emerging market currency having lost almost 14 per cent since January this year.
Earlier this month, Honda Cars India said it may have to go for yet another price hike due to the falling rupee.
Panic dollar demand from importers and speculative traders sent the home currency sinking to a historic low of 72.99.
Petrol price in Mumbai has touched Rs 89.80 per litre, while diesel is being sold at Rs 78.42 per litre.
The economists gave a 60 per cent probability for RBI staying on hold, they said, adding that "one cannot rule out" a hike on currency weakness and higher oil prices.
The rupee, Asia's worst performing currency this year, has depreciated about 12 per cent year-to-date against the U.S. dollar, closing at 72.39 on Wednesday, after a record low of 72.99 on Tuesday.
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 strengthened 0.7 per cent to 72.5350 per dollar on Wednesday, after hitting an all-time low of 72.99 in the previous session.
The proposal, which is part of a broader government plan to cut "non-necessary" imports to stop an outflow of dollars that has sent the rupee to record lows, will be discussed by the trade ministry.
The government's latest measures to support the rupee announced last week were particularly underwhelming for market participants who have since increased bearish positioning on the currency.
Besides, dollar-selling by exporters and banks, easing crude prices in the global market and weakness in the dollar against other currencies overseas, helped the domestic currency rebound.
As per the report, during the June 2008 to May 2009 period, when rupee depreciated by 13 per cent, the RBI sold dollars worth $43 billion, though the forex reserves at that time stood at $312 billion.
Rupee has been punished for the country's widening trade gap and swept into the broader emerging market turmoil caused by rising U.S. interest rates and an escalating U.S.-China trade conflict.