Backed by heavy dollar selling and lack in demand from FIIs, rupee bounced back sharply and closed at Rs 62.51 per dollar after gaining 59 paise on Tuesday, its biggest gain in over two months. The surprise move of RBI to hike interest rate did have an impact on the stock markets but was not able to limit the gain in domestic currency.
The gain of 59 paise is the biggest daily gain since vaulting 70 paise on November 18, 2013. Meanwhile, the equity markets remained negative but unlike the previous session, markets bounced back and closed with marginal losses. The benchmark Sensex ended the session at 20,683.51 after losing 23.94 points. While Nifty slid marginally by 9.6 points to 6,126.26.