The Indian rupee recovered from its record lows and opened nearly 27 paise higher against the US dollar on Wednesday. The rupee had plunged almost 46 paise to a fresh low of 72.9675 against the US dollar in late afternoon trade on Tuesday, nearing the 73/$ mark. The Indian rupee had closed at an all-time low at 72.9662 per USD.
The Indian rupee opened at 72.6987 against the dollar on Wednesday, recovering almost 27 paise from its previous close at 72.9662 per dollar, Bloomberg data showed. Fresh selling of the US currency by exporters and banks, along with easing crude prices in the global market and weakness in the dollar against other currencies overseas, helped the domestic currency rebound, PTI reported forex dealers as saying.
The rupee’s recovery was also supported by a higher opening in the domestic equity markets. Oil prices were steady on Wednesday as concerns that producers will not be able to respond to a shortfall in supply once U.S. sanctions on Iran are enacted outweighed a gain in stockpiles in the United States, the world’s biggest oil user, said a Reuters report.
On Tuesday, a sharp plunge in the rupee was observed exactly after Reuters reported citing an unidentified finance ministry source that India sees rupee value of 72-73 against the US dollar as “fair value”. Strengthening crude oil prices also added to the rupee woes.