Rupee opens higher: INR recovers 15 paise from record low; trades at 91.50 against US dollar in early trade
The rupee recovered 15 paise on Thursday, strengthening to 91.50 against the US dollar in early trade, rebounding from its all-time low levels touched in the previous session. The recovery was supported by improved risk appetite after US President Donald Trump said he had no intention of imposing tariffs on Europe over Greenland, easing geopolitical concerns. On Wednesday, the rupee plunged 68 paise to close at an all-time low of 91.65, reflecting heightened global uncertainty and strong dollar demand. Forex traders said investor sentiment improved after Trump announced at the World Economic Forum in Davos that he was scrapping planned tariffs on eight European nations and indicated that a framework had been reached on Greenland. At the interbank foreign exchange, the rupee opened at 91.54 before gaining further ground to trade at 91.50, marking a 15-paise rise from its previous close. Forex traders, however, cautioned that the currency remains under pressure amid ongoing global geopolitical uncertainties, despite the near-term relief. The pending trade agreement with the United States continues to be seen as a key stabilising factor, with traders noting that the rupee may remain vulnerable to external shocks until geopolitical risks ease and the deal materialises. According to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, the rebound was aided by gains in Asian equities and Trump’s relatively conciliatory tone towards Europe in his Davos speech, reported news agency PTI. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.02 per cent to 98.78. Brent crude, the global oil benchmark, traded 0.17 per cent higher at USD 65.35 per barrel in futures trade. On the domestic equity market front, the Sensex jumped 533.37 points to 82,443, while the Nifty advanced 157.20 points to 25,314.70 in early trade, lending further support to the rupee. Foreign institutional investors sold equities worth Rs 1,787.66 crore on Wednesday, according to exchange data.
