The Indian rupee recovered well in opening trades on Thursday tracing sharp pull back in dollar index overnight. Dollar index slumped by near 1% yesterday and edged below 99 mark overseas after the US Treasury Department stepped in to provide relief to bond markets. The Treasury Department announced that it would at least double the maximum size of its liquidity-support buyback operations for longer-dated nominal securities. The current maximum size of $2 billion per operation will be at least $4 billion per operation. INR opened at Rs 95.57 per dollar but lost some momentum to hit a low of 95.64 so far during the day. Positive cues from global equities are likely to keep local shares optimistic and support the counter. Meanwhile, RBI noted in the minutes of its August monetary policy that RBI has built a substantial dollar cushion to defend rupee.
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