Indian currency: Rupee recovers 55 paise, closes at 90.38/ US dollar
Virendra Pandit
New Delhi: The Indian rupee on Wednesday recovered 55 paise from its all-time low level to close at 90.38 (provisional) against the US dollar after a volatile trade, amid likely aggressive RBI intervention, the media reported.
Experts said the rupee’s recent fall against the US dollar was primarily driven by external factors, not domestic economic weakness, and the high volatility in the forex market is expected to persist amid shifting economic and geopolitical cues.
The lack of known progress in the US–India trade negotiations and extended selling by foreign portfolio investors have weighed on the sentiment, while Brent crude oil prices hovering near USD 60 per barrel supported the domestic unit at lower levels, analysts said.
At the interbank foreign exchange, the Indian rupee opened at 91.05 against the US dollar, then recovered some lost ground to touch an intra-day high of 89.96, registering a 97 paise gain from its previous close.
At the end of trade on Wednesday, it was quoted at 90.38 (provisional), up 55 paise over its last close.
On Tuesday, the rupee tanked below 91 per dollar, hitting a low of 91.14, before settling at an all-time low of 90.93 against the greenback.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.42 percent higher at 98.56.
Brent crude, the global oil benchmark, was trading 2.09 percent higher at USD 60.16 per barrel in futures trade.
Market experts said the RBI remains focused on curbing volatility rather than defending a specific level, supporting a market-driven approach. Looking ahead to 2026, the rupee is expected to relatively appreciate if the India-US trade deal is finalised and capital flows improve.
On the domestic equity market front, Sensex declined 120.21 points to settle at 84,559.65, while the Nifty dropped 41.55 points to 25,818.55.
Foreign Institutional Investors sold equities worth Rs. 2,381.92 crore on Tuesday, according to exchange data.
