News that talks with the international lender to resume a loan program had been successful saw the rupee rebound against the US dollar in the first half of the day, but the rupee soon lost steam and closed 45 paisas, or 21%, lower at Rs211.93 in the interbank market on Wednesday.
The market opened on a positive note Wednesday morning as a major breakthrough in talks with the IMF was reported and the rupee gained by Rs0.88 to a high of Rs210.60 in the interbank.
The appreciation meant that the rupee had ended a losing streak against the greenback, but the positive sentiment could not last long and the rupee soon lost the gains and fell below the opening rates.
The fluctuating trend in the US dollar value was mirrored in the open market too, but the greenback shed its value by Rs2.
The greenback lost to Rs112 from Rs114 in the first trading session but was being traded at Rs212 in the second half.
On Tuesday, the interbank rate for the US dollar had closed at Rs211.48, up Rs1.52 from the previous close of Rs209.96. During intraday trading of the dollar earlier in the day on Tuesday, the dollar had even crossed RS212, a new high.
However, news early on Wednesday morning that negotiations with the International Monetary Fund (IMF) and the government had been successful, had a positive impact on the US dollar exchange rate.
This is a developing story and will be updated accordingly