The Indian rupee strengthened against U.S. dollar on Wednesday, after touching a new record low in the morning trade, following reports that Indian Prime Minister Narendra Modi is set to hold a meeting during the weekend to announce measures to prevent a sharp fall in the rupee.
The government is planning to unveil steps to check the rise in oil prices as well. The PM is also likely to discuss economic scenario over the weekend.
Following the news, the Indian rupee bounced off to a 5-day high of 71.93 against the greenback, marking a 1.3 percent rise from a historic low of 72.91 set early in the day. Next key resistance for the rupee is seen around the 67.00 region.
Indian markets closed higher, with the benchmark BSE Sensex rising 0.81 percent or 304.83 points to 37,718, while the broader Nifty climbed 0.73 percent or 82.40 points to 11,370.
Investors await India’s consumer inflation and industrial production data due shortly.