In the biggest single-day gain ever, the Indian rupee surged back by 100 paisa to close at 72.45 against the US dollar yesterday. On Thursday, the currency had gained 50 paisa but on Friday managed to make a record comeback. The currency is now at 1.73 against the UAE dirham. This was possible because of the crude oil prices letting up and also in the backdrop of the possibility of the US granting special waivers to India in view of the sanctions being imposed on oil imports from Iran.
Moreover, other factors providing support to the currency were the equity market that demonstrated a bullish trend and new inflows of foreign funds. Thus there was a significant rise of 150 paisa over the last two days that witnessed two trading sessions.
The rupee has gained some lost ground after months of downward spiraling with the recent developments emerging in the crude oil sector. The prices have been dipping thus considerably easing worries over the expanding current account deficit. Despite the sanctions imposed on Iran, the US is considering giving waivers to India and a few other countries so that they can keep buying crude oil from Iran.