MUMBAI, Dec 17: The Indian rupee rebounded 55 paise on Wednesday to close at 90.38 against the US dollar, recovering from an all-time low of 90.93 in a volatile session, aided by suspected aggressive intervention by the Reserve Bank of India (RBI).
Analysts said the rupee’s weakness in recent weeks was driven largely by external factors, including persistent capital outflows, elevated dollar demand, and delays in US-India trade negotiations, rather than domestic economic vulnerabilities.
The currency opened at 91.05, touched an intra-day high of 89.96, and ended the day 55 paise stronger. Brent crude prices near USD 60 per barrel provided some support, while market sentiment remained cautious due to shifting global economic and geopolitical cues.
Despite India’s strong GDP growth, robust foreign exchange reserves, and a manageable current account deficit, selling by foreign portfolio investors has added pressure.
Kotak Mutual Fund noted that the rupee has depreciated roughly 6% year-to-date, making it Asia’s worst-performing currency in 2025.
Experts expect the rupee to remain volatile, with immediate technical resistance at 90.60 and support at 89.70.
The RBI is focusing on curbing volatility rather than defending a specific level, adopting a market-driven approach.
On the domestic equity front, Sensex declined 120.21 points to 84,559.65 and Nifty fell 41.55 points to 25,818.55, while foreign institutional investors turned net buyers, acquiring Rs 1,171.71 crore in equities. A positive resolution in trade negotiations could support gradual rupee appreciation. (PTI)
