Rupee climbs 1% to 95.76 vs USD after RBI moves to curb dollar demand

The rupee surged 1% to 95.76 against the dollar at Monday’s open after the RBI introduced measures to curb dollar demand and speculative activity. The steps include restrictions on derivative contract rebooking and higher hedging costs. While reduced importer demand could lower forward premiums, higher balance-sheet costs and tighter liquidity may push pricing higher, Barclays said.