Stimulus package helps rupee post biggest single-day gain in 5 months

The rupee on Tuesday spurted by 54 paise, its biggest single-day gain in more than five months, to close at a one-week high of 71.48 against the US dollar, boosted by positive sentiment over the fiscal situation.

The Reserve Bank's decision to transfer a record Rs 1.76 trillion dividend and surplus reserves to the government revived the rupee, forex traders said.

The US currency losing strength against major global rivals also boosted the rupee sentiment. The US dollar index, which measures its strength against six global peers, dropped 0.18 per cent to 97.90 on expectations that the US-China trade talks will resume soon.

Chinese currency yuan, however, fell further to more than 11-year low against the dollar.

The rupee gained probably on the back of stable fiscal situation, Sunil Sharma, chief investment officer, Sanctum Wealth Management, said. At the interbank foreign exchange market, the rupee opened higher at 71.70 a dollar.