Rupee Jumps Most Since 1986 on RBI Support; Bonds, Stocks Rally
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India’s rupee had its biggest gain since 1986, rebounding from a record low, amid speculation a central bank plan to supply dollars to the largest oil buyers will cool demand for foreign exchange. Bonds and stocks rallied.
The Reserve Bank of India will provide foreign currency to state-owned Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp., which the authority will repurchase after a specified period, according to a statement on its website late yesterday. The rupee plunged the most in 20 years yesterday on concern a surge in oil prices amid political tension over Syria will worsen India’s current-account deficit and push the economy toward its biggest crisis since 1991.