Rupee gains on report of RBI nudging oil firms to reduce dollar buys

Central bank's rate hike and easing dollar index lend support to domestic currency

The rupee gained sharply on Friday as the US dollar eased globally and reports said the Reserve Bank of India had nudged public sector oil companies to cut down on dollar purchases in the spot market, dealers said.

The domestic currency settled at 81.35 per dollar as against 81.85 at previous close. In this calendar year, the rupee has depreciated 8.6 per cent versus the dollar.

Rupee’s depreciation has been aggravated since September 21 which was when the Federal Reserve signaled a longer-than-expected US rate hike cycle. The Indian currency has shed 1.7 per cent since then.