The rupee opened strong by 26 paise at 62.85 per dollar against the previous close of 63.11 per dollar on the back of recovery in the domestic equity market.
Last week, RBI Governor Raghuram Rajan had assured that he will not roll back the special dollar swap window for oil companies in a hurry after it lost more than one per cent during the week.
In fact, he said that majority of the oil demand is being met through the markets from almost a month now.
“There is no fundamental reason for volatility in the value of the rupee,” Rajan had said on Wednesday.
Current account deficit
He had also that India’s current account deficit is likely to be lower by $32 billion this year compared to last year.
A higher current account deficit exerts pressure on the local currency as more dollars are required to finance the same.
A dealer of a public sector bank said that the rupee will not fall below 63.50 during the week, while capping the lower limit at 62.75.
The overnight call money rate, the rate at which banks borrow short-term funds from each other, opened higher at 8.80 per cent from the previous close of 8.70 per cent.
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