Rupee rebounds! Currency rises 11 paise in early trade; reaches 90.12 against US dollar

Rupee started Wednesday on a weak note but recovered to gain 11 paise against the US dollar in early trade, buoyed by easing crude oil prices and a softer US currency in overseas markets. In the interbank foreign exchange market, the domestic unit opened weaker at 90.26 against the greenback but soon inched higher touching an intraday high of 89.94 before settling at 90.12 in early deals. This marked an improvement from Tuesday’s close of 90.23, when the rupee had ended 6 paise lower. Forex analysts said the rebound came as traders took cues from declining crude oil prices and a marginal retreat in the US dollar. However, they noted that market participants remained cautious amid ongoing geopolitical developments and ahead of key US inflation data, which is expected to offer direction on the Federal Reserve’s next policy move. The dollar index, which gauges the greenback’s strength against a basket of six major currencies, was trading slightly lower, down 0.01 per cent at 98.90. Crude oil prices also edged down, with Brent crude, the global benchmark, slipping 0.47 per cent to USD 65.17 per barrel in futures trade. Domestic equity markets showed resilience despite cautious sentiment. The benchmark Sensex rose 34.81 points to trade at 83,662.50, while the broader Nifty gained 14.15 points to reach 25,746.90. Meanwhile, foreign institutional investors continued to pare their exposure to Indian equities. According to exchange data, they offloaded shares worth Rs 1,499.81 crore on Tuesday.