The rupee trimmed its initial gains but was still quoting up 178 paise at 67.02 in the evening trade (about 4.15 p.m.) due to fresh selling of dollar by banks and exporters. The fresh measures announced by the Reserve Bank of India to check the rupee's free fall strengthened the rupee. Forex window To stabilise the free fall in the rupee, the Reserve Bank of India (RBI) had on Wednesday opened a special window to help the three state-owned oil marketing companies, IOC, HPCL and BPCL, which need about $ 8.5 billion every month to meet their daily foreign exchange requirement. There are also reports that India will import oil from Iran which would save about $22 billion. Equities rally Further a sharp jump in the domestic equity market supported the rupee. The BSE-benchmark Sensex ended higher by 404.89 points (2.25 per cent) at 18,401.04. The Indian currency opened sharply higher by 190 paise at 66.90 per dollar after recording its biggest single-day drop of 256 paise in 18 years on Wednesday, closing at a new historic low of 68.80. Heavy dollar demand from importers, prospects of the US tapering its fiscal stimulus, instability in Syria amid outflows from emerging economies, which have high current account deficit, have weighed heavily on the rupee. In addition, Lok Sabha approval for the Rs 1.35-lakh-crore Food Security Bill on Tuesday sparked fears that the fiscal deficit may worsen. The currency has fallen seven per cent this week and 15 per cent since July 15, when the Reserve Bank of India announced liquidity tightening measures to stem the volatility in the rupee.

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