Rupee recovers 55ps to 90.38/$

Mumbai: The rupee recovered 55paise from its all-time low level to close at 90.38 (provisional) against the US dollar after a volatile trade, amid suspected aggressive central bank intervention.

Analysts said the rupee’s recent fall against the US dollar was primarily driven by external factors, not domestic economic weakness, and the high volatility in the forex market is expected to persist amid shifting economic and geopolitical cues.

The lack of progress in the US–India trade negotiations and extended selling by foreign portfolio investors have weighed on the sentiment, while Brent crude oil prices hovering near USD 60 per barrel supported the domestic unit at lower levels.

At the interbank foreign exchange, the rupee opened at 91.05 against the US dollar, then recovered some lost ground to touch an intra-day high of 89.96, registering a 97paise gain from its previous close. At the end of trade on Wednesday, the rupee was quoted at 90.38 (provisional), up 55paise over its last close.

On Tuesday, the rupee tanked below 91 per dollar, hitting a low of 91.14. It finally settled at an all-time low of 90.93 against the American currency. “The Indian rupee appreciated after a five-day losing streak, bolstered by suspected aggressive intervention from the central bank,” Dilip Parmar, Research Analyst, HDFC Securities, said.

Parmar further added that high volatility is expected to persist in the forex market amid shifting economic and geopolitical headlines.