Early Recovery Supported by Lower Crude Prices
The Indian rupee staged a modest recovery from its lowest levels, gaining 9 paise to trade at 91.90 against the US dollar in early deals on Friday. The rebound was supported by a decline in global crude oil prices, which provided some relief to the domestic currency.At the interbank foreign exchange market, the rupee opened at 91.89 and strengthened to an early high of 91.87 before settling at 91.90 in initial trade. This marked an improvement from its previous close of 91.99.
Gains Limited by Strong Dollar and FII Outflows
Market participants said the recovery in the rupee was capped by continued strength in the US dollar and sustained withdrawal of foreign funds from Indian equities. The currency had ended Thursday on a flat note at its lowest level of 91.99 against the greenback.Earlier, on January 23, the rupee had touched an all time intraday low of 92 against the US dollar.
Dollar Index Strengthens After Fed Decision
The dollar index, which measures the greenback’s performance against a basket of six major currencies, was trading 0.36 per cent higher at 96.48. Analysts attributed the firmness in the dollar to the latest policy decision by the US Federal Reserve, which kept interest rates unchanged at its first policy meeting of 2026.Crude Oil Slides, Offers Support to Rupee
In the commodities market, Brent crude prices declined 1.50 per cent to USD 69.62 per barrel in futures trade. Lower crude prices tend to ease pressure on the rupee by reducing India’s import bill.Equity Markets Weigh on Currency Sentiment
On the domestic equity front, benchmarks opened lower, adding pressure on the currency. The Sensex fell 520.07 points or 0.63 per cent to 82,046.30 in early trade, while the Nifty declined 157.65 points or 0.62 per cent to 25,261.25.Foreign institutional investors sold equities worth Rs 393.97 crore on Thursday, as per exchange data.
Economic Survey Flags Investor Reluctance
The Economic Survey tabled in Parliament on Thursday noted that the rupee is punching below its weight. It added that investor reluctance to commit funds to India warrants examination, especially at a time when inflation remains under control and the growth outlook is favourable.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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