The rupee recovered from its all-time low of 80.05 to close 6 paise higher at 79.92 (provisional) against the US dollar on Tuesday, tracking its regional peers and a positive trend in domestic equities.
At the interbank forex market, the local unit opened lower at 80.00 against the greenback and fell further to an intra-day low of 80.05.
The local unit recouped losses later and settled at 79.92 (provisional), registering a rise of 6 paise over its previous close.
On Monday, the rupee for the first time declined to the low level of 80 against the US dollar in intra-day spot trading before ending the session 16 paise lower at 79.98 amid a surge in crude oil prices and unrelenting foreign fund outflows.
“The Indian rupee broke the level of 80 after many days’ failed efforts by the dollar bulls amid higher crude oil prices. However, the central bank’s intervention and stronger regional currencies and equities supported the rupee to erase early morning losses,” said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar further said the near-term consolidation in the rupee is likely along with the dollar index ahead of the European Central Bank (ECB) and Bank of Japan policy meetings on Thursday.
