RBI pulled off a Dhurandhar move to support rupee

Delhi: The RBI pulled off a Dhurandhar move, complete with part-2 The Revenge, to stabilise a weakening rupee, reduce artificial demand for dollars, prevent speculative bets, and gain an upper hand in the Indian currency market. Just like the blockbuster movie that set cash registers ringing, RBI’s measures too felt like a thunderbolt, advancing the rupee by 1.8% to 93.10 on Thursday, which saw the biggest single-day appreciation in at least 13 years.

Coming to the plot, which has its own twists and sub-plots, the RBI introduced measures that were among the toughest in over a decade. It clamped down on banks’ speculative bets against the exchange rate, which was putting untold pressure on an already weakening rupee.