Rupee recovers 7 paise from all-time low to close at 88.68 against US dollar

Mumbai, Sep 25 (PTI) The rupee moved in a tight range to settle 7 paise higher at 88.68 (provisional) against the American currency on Thursday due to suspected RBI intervention amid a strong US dollar and weak domestic markets.

Forex traders said the H1-B visa fee hike and surge in crude oil prices pressured the rupee. However, the selling of greenbacks by exporters and reports of intervention by the RBI prevented a sharp fall in the domestic unit.

Moreover, investors remained concerned over global trade uncertainties and the impact of the US visa fee hike on India's IT services exports.

At the interbank foreign exchange, the rupee opened at 88.65 against the US dollar, and witnessed an intraday high of 88.60 and a low of 88.70 against the greenback.

The domestic unit finally settled for the day at 88.68 (provisional), registering a recovery of 7 paise over its previous close.

On Wednesday, the rupee ended 2 paise down at its lowest-ever closing level of 88.75 against the US dollar.

"We expect the rupee to remain weak on recovery in the US Dollar and risk aversion in global markets amid geopolitical tensions between Russia and Ukraine," said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

"US visa fee hike issue and rising crude oil prices may further pressurise the rupee. However, the selling of Dollars by exporters may support the rupee at lower levels. Traders may take cues from the final Q2 GDP, weekly unemployment claims, and durable goods orders data from the US. USD/INR spot price is expected to trade in a range of 88.40 to 89.10," Choudhary added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 97.80.

Brent crude, the global oil benchmark, was trading 0.39 per cent lower at USD 69.04 per barrel in futures trade.

On the domestic equity market front, Sensex tumbled 555.95 points to settle at 81,159.68, while the Nifty fell 166.05 points to 24,890.85.

Foreign Institutional Investors offloaded equities worth Rs 2,425.75 crore on Wednesday, according to exchange data.

Meanwhile, Commerce and Industry Minister Piyush Goyal is in the US for trade talks. He is accompanied by senior officials of the ministry, including special secretary and India's chief negotiator Rajesh Agrawal.

Goyal has held discussions with his US counterpart.

This visit comes in the backdrop of recently concluded day-long discussions in New Delhi between US Chief Negotiator Brendan Lynch and Agrawal on the proposed bilateral trade agreement. PTI DRR BAL BAL