a customer hands indian currency notes to an attendant at a fuel station in mumbai india august 13 2018 reutersfrancis mascarenhas aug 30 reuters  the indian rupee notched its biggest oneday gain in a year on tuesday against a wobbly dollar as local equities saw a rush of foreign investor inflows the partially convertible rupee surged 06 to 7945 in its best session since aug 27 2021 the currency had hit a record low of 8012 on monday but closed at 799625 indias nifty 50 stock index nsei soared 27 as investors returned to buy the dips after a recent selloff overall local equities have seen foreign investor inflows of about 6 billion in august the highest since december 2020 august also marked the first month this year when overseas investors turned net buyers of indias government debt on the day yield on the 10year paper dropped 6 basis points to 71893 hsbc analysts became more optimistic about the rupee citing a pullback in commodity prices and return of inflows supporting the currency in addition to support from the countrys central bank while we think the usdinr pair can still rise further we see scope for the rupee to outperform some other deficit peers temporarily they wrote in a note the rupees strength on tuesday comes after the reserve bank of india rbi stepped in to prevent the currency from trading under 80 per dollar in the previous session traders had told reuters read more the dollar index losing steam ahead of us jobs data also lifted market sentiment however with the federal reserve determined to keep interest rates higher for longer even as recession looms in the worlds biggest economy it could boost nearterm volatility analysts warned amid global turmoil and weakness in major asian peers like the japanese yen and the chinese yuan it will be interesting to see to what extent the rbi succeeds in protecting the usdinr pair said amit pabari managing director at consultancy services provider cr forex reporting by anushka trivedi in mumbai editing by shinjini ganguli