Rupee recovers from record low, rises 21 paise to 86.49 against U.S. dollar in early trade
The Hindu
Rupee appreciates against dollar on positive inflation data and easing crude oil prices, supported by domestic equity markets.
The rupee rebounded from its lowest-ever level and appreciated 21 paise to 86.49 against the U.S. dollar in early trade on Tuesday (January 14, 2025) on the back of retreating American currency and easing crude oil prices.
According to forex traders, the Indian currency found support from positive inflation numbers and some recovery in domestic equity markets even though the outflow of foreign funds continued to play a negative role.
At the interbank foreign exchange, the rupee opened at 86.57 and pared further losses to trade at 86.49 against the greenback in initial deals, 21 paise higher from its previous close.
On Monday, the rupee logged its steepest single-day fall in nearly two years and ended the session 66 paise down at its historic low of 86.70 against the U.S. dollar.
The fall of 66 paise in one session was the steepest since February 6, 2023, when the unit had lost 68 paise.
The Indian currency has plunged more than ₹1 in the past two weeks from the closing level of 85.52 on December 30. It had breached the 85-per-dollar mark for the first time on December 19, 2024.
Last week, the local currency had declined 18 paise to settle at 86.04 against the U.S. dollar on Friday, a day after registering a marginal gain of 5 paise. In the preceding back-to-back sessions on Tuesday and Wednesday, it had plunged 6 paise and 17 paise, respectively.