MUMBAI (Reuters) - The rupee recovered and briefly turned positive after the RBI clarified that foreign investors who have issued participatory note can only hedge their currency risk if they receive a specific mandate from their customer.
By requiring issuers of these popular contracts to get such a mandate, the Reserve Bank of India is likely to want to further curb speculation, making sure all P-note related derivative trades are done for genuine customer needs, traders said.
The RBI was also suspected to have sold dollars, helping pull back the currency from the day's lows.
The rupee rose to as much as 60.29 to a dollar and was last trading at 60.47/48. It had last closed at 60.40/41.
(Reporting by Subhadip Sircar and Swati Bhat; Editing by Rafael Nam)
