PC pep talk ends R’s six-day fall

U-TURN Currency sees biggest single-day gain in a decade; Sensex up 206 points

MUMBAI / NEW DELHI: The rupee recorded its biggest single-day jump in a decade, soaring 135 paise to close at 63.20 to a dollar on Friday.

It reversed a week-long trend of sliding to new lows as currency and equity markets cheered concerted moves by authorities to soothe the frayed nerves of investors.

Stock markets mirrored similar trends with the Sensex gaining 206 points to close at 18,519.44 on positive cues from the rupee.

“Statements from the government and RBI in support of the rupee and assurance that the government is not planning capital controls improved sentiments,” said Sugandha Sachdeva, currency analyst, Religare Securities.

Finance minister P Chidambaram and RBI governor D Subbarao had Thursday said there were no plans for capital controls and that India had enough forex reserves to tide over the crisis.

The rupee had touched a new low of 65.56 to the dollar on Thursday, partly mirroring the government and RBI’s inability to contain a free-falling currency despite a string of measures.

The Indian rupee has been the worst performing among emerging market currencies, shedding more than 16% since May amid strong signs of recovery in the US that is prompting global investors to withdraw money from countries such as India. The rupee’s big jump by 135 paise on Friday is the biggest rise in a decade after a 152 vault on May 18, 2009.