Mumbai, Mar 05: The rupee rebounded from its all-time low, gaining 48 paise to trade at 91.57 against the US dollar in early Thursday trade, supported by positive momentum in domestic equity markets.
However, forex analysts said the local currency remained under pressure due to rising crude oil prices, a stronger US dollar, and heavy selling of Indian equities by foreign investors amid escalating tensions in the Middle East.
At the interbank foreign exchange market, the rupee opened at 92.16, touched a high of 91.30, and was trading at 91.57 against the greenback, up 48 paise from Wednesday’s closing. The Indian currency had plunged 56 paise to an all-time low of 92.05 on Wednesday, following a 41-paise loss on Monday. The forex market was closed on Tuesday for Holi.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.20 per cent to 98.93.
Brent crude, the global oil benchmark, surged 2.78 per cent to $83.66 per barrel in futures trade, fueled by escalating threats to crude supply through the Strait of Hormuz.
The military conflict involving the US, Israel, and Iran continued on Thursday, with Iranian missiles striking Israel after an American submarine sank an Iranian warship on Wednesday. Iran has threatened to target military and economic infrastructure across the region.
Experts warned that rising crude prices could sharply increase India’s import bill, as the country meets around 85 per cent of its fuel demand through imports.
On the domestic equity front, the Sensex rose 212.26 points, or 0.27 per cent, to 79,328.45, while the Nifty gained 86.70 points, or 0.35 per cent, to 24,567.20 in early trade.
Foreign institutional investors (FIIs) sold equities worth Rs 8,752.65 crore on a net basis on Wednesday, according to exchange data. (Agency)
