MUMBAI, Dec 4: The Indian rupee recovered from record lows, rising 26 paise to close at 89.89/USD on Thursday, after earlier hitting an all-time low of 90.43 amid foreign fund outflows, rising crude oil prices, and delays in the India-US trade deal.
Traders attributed the rebound to a weaker US dollar following disappointing ADP non-farm payroll data and reports of Reserve Bank of India (RBI) intervention to support the currency.
The dollar index edged lower to 98.84, while Brent crude rose 0.22% to USD 62.81 per barrel.
Analysts warned that despite the recovery, persistent FII outflows, elevated crude prices, and a large trade deficit may continue to pressure the rupee.
Support could come from softer US economic data, rising odds of a Fed rate cut, and possible RBI measures.
In the domestic equity market, the Sensex gained 158.51 points to settle at 85,265.32, and the Nifty rose 47.75 points to 26,033.75.
Foreign investors sold equities worth Rs 1,944.19 crore. Market participants are awaiting the RBI’s monetary policy decision on Friday, with expectations influenced by falling inflation, strong GDP growth, and ongoing geopolitical tensions. (PTI)
