The Indian rupee notched up its largest single day gain in nearly six months on Thursday due to hefty capital inflows, adding to worries the central bank may intervene yet again to stem the unit's rise.
The partially convertible rupee ended at 44.91/44.93 - registering its sharpest intraday gain since June. 2, according to Reuters data and 0.8 percent higher than a previous close of 45.28/45.29. "There have been some good capital inflows today and that has helped the rupee gains," said R.A. Sankaranarayan, head of treasury at Bank of India.
Dealers said expectations of large capital inflows totalling nearly a billion dollars by a major software firm also spurred traders to sell at lower levels. But strong resistance around the 44.90 per dollar level and worries the central bank may intervene yet again may limit gains in the near term. State-run banks were being closely tracked after heavy central bank intervention in recent sessions.
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