Rupee slips 16ps to 92.17/$

Mumbai: The rupee recovered from record low levels and settled with a loss of 16paise at 92.17 against the US dollar on Thursday as global crude oil prices stayed on an upward trajectory amid the raging war in West Asia.

A stronger greenback and volatility in the domestic equity markets further weighed on the rupee, which was already on a weak footing in early trade due to heavy foreign fund outflows, forex traders said.

At the interbank foreign exchange, the local unit opened at 92.25 but kept slipping to touch its record intra-day low against the greenback at 92.36.

However, it recovered some of its lost ground and eventually settled at 92.17, down 16paise from its previous close. The rupee previously recorded its lowest intra-day low of 92.35 against the greenback on March 9. “The rupee declined, hitting a record low of 92.36 on weak domestic markets and rising crude oil prices.

A positive US dollar index and FII outflows, too, weighed on the rupee. However, the rupee recovered on supposed intervention by the RBI,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

“We expect the rupee to trade with a negative bias on a surge in crude oil prices and risk aversion in the global markets amid the ongoing geopolitical tensions in the Middle East as it entered the 13th day.

Continued FII outflows may further pressure the rupee,” he said. According to Choudhary, the USD-INR spot price is expected to trade in the range of Rs 91.70 to Rs 92.40.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15 per cent higher at 99.38.