Rupee rebounds 19ps at 91.71/$

Mumbai: The rupee rebounded from its all-time low levels and gained 19paise to close at 91.71 (provisional) against the US dollar on Tuesday, on decline in US dollar index and India-EU FTA negotiations. Forex traders said the rupee recovered marginally as traders rushed to cover broad dollar weakness.

Moreover, the deal over India-EU FTA boosted domestic market sentiments. However, rising commodity and crude oil prices capped sharp gains. At the interbank foreign exchange, the rupee opened at 91.82 and lost ground to touch an intra-day low of 91.90 against the greenback.

The domestic unit settled for the day at 91.71 (provisional), registering a gain of 19 paise from its previous close. On Friday, the rupee hit a historic low of 92 per dollar and gained marginally to settle at 91.90 against the American currency. Forex and equity markets were closed on Monday for Republic Day.

“We expect the rupee to trade with a slight positive bias as India-EU FTA may boost domestic market sentiments. Weakness in the US dollar index may further support the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

However, selling pressure from FIIs and ongoing geopolitical tensions may pressure the rupee at higher levels. “The US has threatened Canada with 100 per cent tariffs and to raise tariffs on South Korea to 25 per cent from 15 per cent currently.