The Indian rupee advanced in offshore trading after the central bank took some of its strongest measures to bolster the currency since the 2013 taper tantrum.
One-month non-deliverable forwards showed the rupee strengthening as much as 2.7% to 94.17 per dollar before paring its gain to 0.7%.
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The Reserve Bank of India on Saturday rolled out a series of steps to prop up the currency including opening a special window to meet the dollar needs of state-run oil companies and introducing a reserve requirement for certain foreign-exchange derivatives. The central bank was spurred into action after the rupee approached a record low near 97 per dollar. The RBI raised interest rates on Wednesday and signaled it was open to further monetary tightening.
"This highlights that the RBI has been behind the curve on FX defense, given the slew of measures that have been necessary this year," Galvin Chia, an emerging Asia strategist at Societe Generale in Hong Kong, wrote in a note.
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The rupee is poised to appreciate in the spot market when trading resumes Monday, with analysts expecting the RBI to defend the 97-per-dollar level.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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