By Dharmesh Prajapati

The rupee posted its biggest single-day gain in two months on June 5, after the Reserve Bank of India (RBI) unleashed a bazooka of measures earlier in the day to shore up the currency, which improved investor sentiment.

The local currency ended at Rs 94.93 per dollar, as compared to Rs 95.79 per dollar in the previous trading session. It has opened at Rs 95.71 per dollar and moved in a 70-paise range throughout the day.

The RBI had introduced a slew of measures to arrest currency depreciation and bring in capital inflows earlier in the day. These included a swap facility for three-year and five-year foreign currency non-resident bank (FCNR-B) deposits and a similar concessional swap facility for external commercial borrowings (ECBs) by central public sector enterprises (CPSEs).

“The RBI’s package signals a clear preference for strengthening the external account through market-friendly capital inflow measures rather than relying solely on foreign exchange intervention,” Kunal Sodhani, Head of Treasury at Shinhan Bank, said.

Earlier in the day, the RBI kept its interest rates steady at 5.25 percent and maintained its ‘neutral’ stance. However, the central bank revised its inflation target to 5.1 percent form 4.6 percent for FY27, and guided its GDP forecast to 6.6 percent from 6.9 percent in FY27.