MUMBAI, Dec 9: The Indian rupee rebounded on Tuesday, ending 18 paise higher at 89.87 against the US dollar, after opening at 90.15, supported by a retreat in the US dollar and falling crude oil prices.
Forex analysts attributed the recovery to likely intervention by the Reserve Bank of India (RBI), weak US dollar sentiment amid expectations of a Federal Reserve rate cut in December, and the decline in global oil prices.
However, weak domestic equities and ongoing foreign fund outflows limited gains.
Dilip Parmar of HDFC Securities noted the rupee’s significant rebound, driven by unwinding of dollar long positions, but cautioned that demand for dollars still exceeds supply, leaving structural vulnerabilities.
Analysts expect the USD-INR to trade in the 89.75–90.25 range ahead of the Fed’s policy decision on December 9–10.
Brent crude fell 0.27% to USD 62.33 per barrel, while the dollar index dropped 0.10% to 98.98.
Meanwhile, Indian equities continued to face pressure, with the Sensex falling 436.41 points to 84,666.28 and the Nifty declining 120.90 points to 25,839.65, as FIIs sold equities worth Rs 3,760.08 crore.
India-US trade talks are scheduled to begin December 10. (PTI)
