Rupee ends 63 paise higher at 86.82 against U.S. dollar; logs highest one-day gain in 2 years

Rupee gains sharply against dollar, showing high volatility amid tariff war concerns, with RBI intervention supporting recovery.

The rupee on Tuesday (February 11, 2025) rallied 63 paise, recording its steepest single-day recovery in nearly two years, to settle at 86.82 (provisional) against the U.S. dollar, backed by dollar selling by banks.

According to forex traders, Tuesday's sharp gain a day after sliding closer to the 88 level shows a highly volatile currency market amid concerns over the worldwide tariff war.

At the interbank foreign exchange, the rupee opened at 87.45 against the greenback and touched the intraday high of 86.61 during the session. The unit settled at 86.82 (provisional) against the dollar, registering a gain of 63 paise from its previous close.

The domestic unit had earlier recorded its steepest single-day gain on March 3, 2023, when it surged 63 paise from the preceding session.

On Monday, the rupee plunged 45 paise to near 88 per U.S. dollar levels in the first half but staged a dramatic rebound in the second half to end with gains at 87.45. Dollar selling by banks possibly on behalf of the RBI helped the rupee recover from all-time lows.

Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, said the rupee rallied by nearly 1 per cent, marking its biggest intraday gains in about two years on intervention by the Reserve Bank of India.

Choudhary said going further the rupee is expected to trade with negative bias amid weak tone in the domestic markets and sustained FII outflows.