The rupee rebounded marginally from its all-time low levels and gained 3 paise to close at 91.62 (provisional) against the US dollar on Thursday, on suspected RBI intervention and a positive trend in domestic equities.
Forex traders said comments from US President Donald Trump at Davos helped shift sentiment, as he confirmed that a framework for a future Greenland agreement has been reached and that tariffs scheduled for February 1 would not be implemented.
At the interbank foreign exchange, the rupee opened at 91.54 then gained ground to touch an intraday high of 91.48 against the greenback. It touched a low of 91.68 before settling for the day at 91.62 (provisional), up 3 paise from its all-time low levels.
On Wednesday, the rupee plunged 68 paise to close at an all-time low of 91.65 against the American currency.
Forex traders said the currency remains under severe pressure from heightening global geopolitical uncertainties.
The pending trade agreement with the US remains a key stabilising factor. Until the geopolitical risk eases and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks, they said.
“At current levels, a substantial portion of global risk appears to be priced into the rupee. From here, markets may enter a phase of consolidation, with the possibility of a partial recovery if risk sentiment stabilises,” CR Forex Advisors MD Amit Pabari said in a research note.
The 92.00 level remains a strong resistance zone, while sustained RBI support could gradually pull USD/INR back toward the 90.50-90.70 range in the near term, Pabari added.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.04 per cent lower at 98.72.
Brent crude, the global oil benchmark, was trading 0.14 per cent higher at $65.33 per barrel in futures trade.
On the domestic equity market front, Sensex climbed 397.74 points to settle at 82,307.37, and Nifty rose 132.40 points to 25,289.90.
Foreign institutional investors offloaded equities worth ₹1,787.66 crore on Wednesday, according to exchange data.
