The rupee on Tuesday gained a hefty 64 paise to 59.25 in early trade at the Interbank Foreign Exchange market on fresh dollar selling by exporters after the RBI announced a slew of measures to stem the local currency's volatility.
Forex dealers said measures announced by the RBI last night, including hiking the lending rates for banks and sucking up of Rs 12,000 crore to stem the continuing fall of rupee, supported the local currency.
Under the measures announced, RBI raised lending rates to commercial banks 2 per cent to 10.25 per cent making the loans costlier.
The rupee had lost 33 paise, the most in a week, to close at 59.89 against the dollar yesterday on fresh demand from banks and importers amid disappointing industrial production, a fall in exports and higher inflation.
Meanwhile, the BSE benchmark index Sensex plunged by 368.91 points, or 1.84 per cent, to 19,665.57 in early trade today.