MUMBAI, March 5: The Indian rupee rebounded from its all-time low, settling 41 paise higher at 91.64 against the US dollar on Thursday, supported by gains in domestic equity markets and likely intervention by the Reserve Bank of India (RBI) to curb extreme volatility amid the ongoing US-Israel-Iran conflict.
The rupee had slumped to 92.05 on Wednesday, marking a steep depreciation over the week.
At the interbank market, the rupee opened at 92.16, touched an intraday high of 91.30, and ended at 91.64.
Analysts noted that despite RBI intervention, a strong dollar, rising crude prices, and foreign fund outflows continued to weigh on the currency.
Brent crude surged 2.84% to USD 83.71 per barrel due to geopolitical tensions and threats to the Strait of Hormuz, raising concerns over India’s import bill, as the country imports 85% of its fuel.
Domestic equity markets mirrored the recovery, with the Sensex rising 899.71 points to 80,015.90 and Nifty climbing 285.40 points to 24,765.90, even as foreign institutional investors offloaded equities worth Rs 8,752.65 crore.
Experts expect continued rupee pressure amid macroeconomic uncertainties and safe-haven flows. (PTI)
