Mumbai: Rupee on Tuesday soared hefty 64 paise to 59.25 in morning trade at the Interbank Foreign Exchange market. The rupee moved up mainly due to fresh dollar selling by exporters after the RBI announced a slew of measures to stem the local currency's volatility.
Forex dealers said that measures announced by the RBI on Monday, including hiking the lending rates for banks and sucking up Rs 12,000 crore to stem the continuing fall of rupee, supported the national currency.
Under the measures announced, RBI raised lending rates to commercial banks from 2 percent to 10.25 percent, making the loans costlier.
Rupee had lost 33 paise, the most in a week, to close at 59.89 against dollar on Monday on fresh demand from banks and importers amid disappointing industrial production, a fall in exports and higher inflation.
Meanwhile, the BSE benchmark index Sensex plunged by 368.91 points, or 1.84 percent, to 19,665.57 in morning trade on Tuesday.


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