Rupee Recovers from Lows, Ends 2 Paise Higher Against US Dollar
Indian rupee recovers from early losses to close 2 paise higher against the US dollar, supported by weak dollar, lower crude prices, and positive equity cues.
The Indian rupee recovered from early losses and settled 2 paise higher at 90.16 against the US dollar on Monday, supported by a weaker American currency and declining crude oil prices. Improved sentiment in domestic equity markets also helped the rupee regain some ground by the end of the trading session.
Table of Contents
Rupee Movement in Interbank Forex Market
In the interbank foreign exchange market, the rupee:
- Opened at 90.23
- Strengthened to an intra-day high of 90.13
- Touched a low of 90.25
- Finally closed at 90.16 (provisional)
This marked a modest recovery after the rupee had fallen 28 paise on Friday to close at 90.18 against the US dollar.
Factors Supporting the Rupee
Market analysts said the rupee’s recovery was aided by:
- Weakness in the US dollar index
- Falling crude oil prices
- Positive cues from domestic equity markets
Investor confidence improved after the new US envoy to India indicated progress on a trade deal, which helped boost risk appetite in Indian markets.
Global Pressures Limit Sharp Gains
Despite the recovery, analysts noted that:
- Geopolitical tensions continued to create volatility
- Traders remained cautious ahead of key macroeconomic data from India and the US due later this week
As a result, the rupee’s gains remained limited.
Dollar Index and Crude Oil Update
- The US dollar index slipped 0.34% to 98.55
- Brent crude oil prices eased 0.28% to USD 63.16 per barrel
Lower crude prices are generally positive for the rupee, as India is a major oil importer.
Equity Markets End Higher
Indian equity markets closed on a positive note:
- Sensex rose 301.93 points (0.36%) to 83,878.17
- Nifty gained 106.95 points (0.42%) to 25,790.25
However, foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹3,769.31 crore.
Forex Reserves See Sharp Decline
According to the latest data:
- India’s forex reserves fell by USD 9.81 billion to USD 686.80 billion
- The decline followed a strong increase recorded in the previous week
Outlook for Rupee
Currency experts expect the USD-INR exchange rate to trade in the range of ₹89.90 to ₹90.60 in the near term, with global cues and inflation data likely to influence movement.
Follow MunsifNews24x7 for latest updates.
