Rupee Surges for Second Day, Opens at 89.65 on Likely RBI Intervention

• The rupee rose for the second consecutive day, opening at 89.65 against the US dollar, driven by likely RBI intervention.
• It opened 24 paise up at 89.41 against the US dollar, after closing at 89.65 on December 19.
• Experts like Amit Pabari suggest 89.20 is a crucial level, with potential for further appreciation towards 88.50–88.30.
• Lower trade deficit in November and FPIs buying Indian equities also contributed to the rupee's strength.
• On December 19, the rupee outperformed Asian peers, appreciating 0.67% and closing at its strongest since December 1.

Why It Matters: Rupee strengthens for second day, hitting 89.65, largely due to RBI intervention and FPI inflows.