Rupee Recovers from Lows as Dollar and Crude Ease
The Indian rupee rebounded from lower levels and strengthened by 11 paise to trade at 90.12 against the US dollar in early trade on Wednesday. The recovery came amid softer crude oil prices and a marginal pullback in the US dollar in overseas markets.At the interbank foreign exchange, the rupee opened at 90.26 and gained momentum to touch an intraday high of 89.94 before settling at 90.12 against the greenback. The domestic currency had ended the previous session 6 paise lower at 90.23 against the US dollar.
Market Participants Remain Cautious Ahead of Key Global Cues
Despite the early gains in the rupee, market participants remained cautious as they monitored ongoing geopolitical developments and awaited upcoming US inflation data. The inflation numbers are expected to offer clarity on the future policy stance of the US Federal Reserve, which continues to influence global currency movements.The dollar index, which tracks the strength of the US currency against a basket of six major currencies, was trading marginally lower by 0.01 percent at 98.90 in early trade.
Crude Oil Prices Support Rupee Movement
On the commodities front, Brent crude, the global oil benchmark, declined 0.47 percent to USD 65.17 per barrel in futures trade. Lower crude prices tend to support the rupee by easing concerns around India’s import bill and inflationary pressures.Equity Markets Open on a Positive Note
Domestic equity markets also showed resilience in early trade. The benchmark Sensex rose 34.81 points to 83,662.50, while the Nifty added 14.15 points to trade at 25,746.90. The positive opening in equities provided additional support to the rupee.FII Activity Remains a Watchpoint
Foreign institutional investors remained net sellers in the equity market, offloading shares worth Rs 1,499.81 crore in the previous session, as per exchange data. Persistent foreign fund outflows continue to be a key factor influencing currency and equity market sentiment.Overall, the rupee’s early recovery reflects a combination of supportive global cues and stable domestic equities, even as investors stay alert to upcoming macroeconomic triggers.
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