Rupee logs best day in over 6 weeks as RBI intervention magnifies oil slump impact

The rupee rose 0.7% against the US dollar on Monday, its best single-session gain since June 12, settling around 95.80 from the previous close of 96.5625. The rally was driven by falling oil prices (Brent crude slipped nearly 10% below $88/barrel), the rupee breaking through near-term resistance levels, and aggressive RBI intervention estimated between $1.5 billion and $3 billion in the spot market. RBI Governor Sanjay Malhotra noted that measures to attract foreign currency inflows had drawn in nearly $32 billion through the FCNR(B) scheme, providing additional support to the currency.