Rupee recovers from record low, spurts 12 paise to 78.10 per US dollar

On Wednesday, the rupee had plunged 18 paise to close at a new all-time low of 78.22

The rupee on Thursday recovered from its record low to close 12 paise higher at 78.10 (provisional) against the American currency, tracking the overnight weakness of the dollar and falling crude oil prices.

The dollar index fell from its elevated levels after the Federal Reserve raised interest rates by 75 basis points in a historic move to fight inflation and projected a slowing economy and rising unemployment in the months to come, traders said.

At the interbank forex market, the rupee opened at 78.06 against the greenback and moved in a narrow range. It finally ended at 78.10, higher by 12 paise over its previous close.

On Wednesday, the rupee had plunged 18 paise to close at a new all-time low of 78.22.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.13% to 105.02.

Brent crude futures, the global oil benchmark, fell 0.25% to $118.21 per barrel.

"Even after higher trade deficit numbers, weaker regional currencies and risk-averse sentiments, the rupee got support from the fall in crude oil prices," said Dilip Parmar, Research Analyst, HDFC Securities.