The Indian rupee staged a sharp recovery on Tuesday, rebounding from its record low to gain 21 paise against the US dollar in early trade. The domestic currency is now trading at ₹88.56 per dollar, bouncing back from Monday’s near-record closing of ₹88.77.
Analysts say the rupee’s rebound comes on the back of falling global crude oil prices and easing foreign capital outflows, both of which have offered much-needed relief after days of pressure from a strengthening US dollar. The currency had been reeling under sustained selling by foreign investors and concerns over global economic trends.
Despite the rupee’s rebound, Indian equity markets opened in the red. The Sensex dropped by more than 200 points in early trade, while the Nifty slipped below the 25,700-mark, dragged down by weakness in auto, IT, and FMCG stocks. Market experts attribute the cautious start to global uncertainty and ongoing foreign fund withdrawals.
While the rupee’s recovery has provided a brief respite, traders remain watchful of upcoming US economic data and oil price movements, which are likely to determine the currency’s next move.
