Indian Rupee Rebounds, Closes 45 Paise Higher at 91.60 Against US Dollar

Rupee Rebounds from Record Low, Settles with 45 Paise Gain

On Thursday, the Indian Rupee (INR) rebounded from its all-time low to settle at 91.60 (provisional) against the US Dollar (USD) with a gain of 45 paise. The recovery was driven by a buying trend in domestic equity markets and reports of Reserve Bank of India (RBI) intervention.

The RBI appears to have intervened to mitigate extreme volatility in the currency due to uncertainties surrounding the ongoing conflict between the US, Israel, and Iran. However, a firm USD, rising crude oil prices, and intense withdrawal of foreign funds continued to exert downward pressure on the INR.

At the interbank foreign exchange, the INR opened at 92.16 and touched an intraday high of 91.30 against the USD. The currency closed the session at 91.60, registering a gain of 45 paise from the previous closing level.

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The INR had slumped 56 paise to close at its all-time low of 92.05 against the USD on Wednesday, following a steep loss of 41 paise on Monday. The forex market was closed on Tuesday due to the Holi festival.

Mirae Asset ShareKhan's Anuj Choudhary, Research Analyst, believes that the RBI's intervention and a positive tone in domestic markets contributed to the INR's rebound from record low levels. However, a strong USD and surge in crude oil prices capped sharp gains.

Key Market Data:

• Dollar Index: 0.13% higher at 98.86
• Brent Crude: 1.83% higher at 82.89 per barrel
• Sensex: 1.14% higher at 80,015.90
• Nifty: 1.17% higher at 24,765.90
• Foreign Institutional Investors (FII) outflows: ₹8,752.65 crore on a net basis on Wednesday

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline