The rupee bounced back sharply by 75 paise to close at 88.06 (provisional) against the US dollar on Wednesday, posting its biggest intraday gain in nearly four months, due to likely intervention by the RBI and a surge in the domestic markets.

Forex traders said domestic markets surged nearly 0.70% on optimism over trade talks between India and the US, which reflected in the USD/INR pair.

Moreover, a weak US Dollar and an overnight decline in crude oil prices also supported the rupee.

At the interbank foreign exchange, the rupee opened at 88.74 against the greenback, and fell below the 88-mark during the session, touching a high of 87.93 per dollar. The domestic unit finally settled at 88.06 against the greenback, registering a rise of 75 paise over its previous close.

On Tuesday, the r

See Full Page