INR registers sharp recovery amid RBI intervention

The Indian rupee recovered well in opening trades on Thursday backed by the Reserve Bank's move to restrict banks' net open position in the onshore forward delivery market. INR opened at Rs 94.62 per dollar and recovered around 150 paise from its record low level to hit a high of 93.14 against the US dollar in early deals. Amid sharp depreciation in the rupee, the Reserve Bank on Wednesday announced more actions focused on authorised dealers (ADs). The moves follow a "review of evolving market conditions" and are applicable immediately, the central bank noted. Authorised dealers (ADs) -- banks authorised by RBI to deal in foreign exchange -- will not be able to offer non-deliverable derivative contracts involving the Indian rupee to resident or non-resident users, the central bank said in a late-evening notification. The domestic unit, however, faced pressure due to unabated withdrawal of foreign capital, strengthening dollar and rising crude oil prices amid volatile geopolitical situation. The rupee, which had been suffering from four consecutive weeks of declines, showed signs of easing after hitting these record lows.