Rupee recovers 7ps to 88.28/$

Mumbai: The Indian rupee recovered from all-time lows and settled for the day higher by 7paise at 88.28 against the US dollar on Friday, on weakness in the US dollar index and positive domestic markets.

Forex traders said the domestic unit traded in a tight range and hovered around its all-time low level as tariff-led pressure on India’s exports and sustained foreign fund outflows dented investors sentiments.

At the interbank foreign exchange, the domestic unit opened at 88.39 and fell to an intraday low of 88.42 against the US dollar during the session. The domestic unit settled for the day at 88.28, recovering 7paise over its previous close.

On Thursday, the rupee slumped 24 paise and closed for the day at an all-time low of 88.35 against the US dollar. It had also touched the lowest-ever intraday level of 88.49 against the greenback. “We expect the rupee to trade with a slight positive bias on overall weakness in the US dollar and rise in risk appetite in global markets on rising odds of a rate cut by Fed in its upcoming FOMC meeting next week,” said Anuj Choudhary, Research Analyst, Currency and commodities, Mirae Asset ShareKhan.

“Markets now expect a 75 bps rate cut in 2025. However, FII outflows and uncertainty over trade tariff issues between India and the US may cap sharp upside,” Choudhary said, adding that traders may take cues from University of Michigan consumer sentiment data from the US.