Jaspreet Kalra

The Indian rupee logged its biggest one-day gain in more than a month on Tuesday as the dollar dipped towards a one-week low, boosting regional currencies, while foreign banks' dollar sales also helped.

Jaspreet Kalra 2 min read By Jaspreet Kalra MUMBAI (Reuters) - The Indian rupee is likely to open weaker on Wednesday after

Trading volume in dollar-rupee non-deliverable forwards (NDF) at India's offshore finance hub soared to a record high in December as banks and companies lapped up arbitrage opportunities amid a worsening outlook for the rupee.

The Indian rupee slumped to a fresh all time-low and is set to post its worst single-day decline in over two years on Monday, bogged down by a surge in the U.S. dollar, likely outflows from local equities and limited intervention from the central bank.

The Indian rupee edged higher on Tuesday, unable to benefit much from the Reserve Bank of India's strong intervention to blunt the effect of heightened interbank dollar demand.

The Reserve Bank of India will continue to intervene as and when necessary to smoothen volatility, but won't go against the tide and massively intervene to protect any levels, the sources said, asking not to be named as the discussions are confidential.

Jaspreet Kalra and Nimesh Vora 1 min read By Jaspreet Kalra and Nimesh Vora

The Indian rupee was marginally weaker on Friday as the impact of heightened dollar demand, spurred by the maturity of positions in the non-deliverable forwards market, was blunted by likely intervention by the Reserve Bank of India (RBI).

The Indian rupee closed modestly stronger on Monday as a softer dollar gave Asian currencies some breathing room ahead of U.S. President-elect Donald Trump's inauguration later in the day.

The Indian rupee weakened along with most of its regional peers on Tuesday as comments about trade tariffs from U.S. President Donald Trump boosted the dollar a day after a selloff in U.S. technology stocks had hurt the greenback. Asian currencies were mostly weaker, with the offshore Chinese yuan down 0.4% at 7.28, while the dollar index rose 0.1% to 107.9. The dollar gained after the Financial Times reported that U.S. Treasury Secretary Scott Bessent has been pushing for new universal tariffs on U.S. imports to start at 2.5% and rise gradually by the same amount each month.