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Rupee recovers from lowest level to settle 9 paise higher at 83.52 against US dollar

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NewsDrum Desk
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Mumbai, Apr 18 (PTI) The rupee rebounded from its all-time low level and closed 9 paise higher at 83.52 against the US dollar on Thursday as the American currency and brent crude oil prices retreated from their elevated levels.

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At the interbank foreign exchange market, the local unit opened at 83.51 against the greenback. The unit hit an intra-day high of 83.49.

The domestic unit finally settled at 83.52 against the dollar, 9 paise higher from its previous close.

On Tuesday, the rupee plunged 17 paise to hit its lowest level of 83.61 against the US dollar for the second time in four weeks.

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"We expect the rupee to remain slightly weak as the US dollar is expected to remain strong on the back of hawkish comments from Fed officials and rising odds of a delay in rate cut by the US Federal Reserve," Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, said.

Choudhary further noted that geopolitical uncertainties may put pressure on the rupee at higher levels. Also, markets are expected to take cues from Israel's response to the attack by Iran.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, "Rupee remained range-bound as dollar was possibly sold by RBI while oil and FPIs continued their relentless buying as stock market fell for a fourth consecutive day after gaining in the morning session. Rupee is expected in a range of 83.40 to 83.60 on Friday." Forex and money markets were closed on Wednesday on account of 'Ram Navami'.

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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 105.87.

Brent crude futures, the global oil benchmark, fell 0.93 per cent to USD 86.48 per barrel.

On the domestic equity market front, benchmark indices Sensex and Nifty witnessed heavy volatility. After opening on a positive note both the indices pared their gains and settled in the negative territory.

Sensex declined 454.69 points, or 0.62 per cent, to settle at 72,488.99 points. The Nifty fell 152.05 points, or 0.69 per cent, to close at 21,995.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 4,260.33 crore, according to exchange data. PTI DRR HVA

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