Rupee gains nearly 100 paise in two days to below 82 against dollar

Overseas flows, lack of RBI dollar buys behind best rupee showing in 2 months

The rupee strengthened significantly against the US dollar on Tuesday, marking its biggest single-day gain since November 11, amid overseas investment flows and a sharp decline in the greenback’s demand from state-owned banks on behalf of oil importers, dealers said.

The domestic currency settled at 81.79 per dollar, against 82.36 per dollar at the close of the previous day’s trade. Tuesday’s level marks the best closing level for the rupee since December 2, Bloomberg data showed. In the past two sessions, the rupee has strengthened by 94 paise.

Traders said that the flows which impacted the currency market on Tuesday