Re recoups 19 paise from all-time low level

New Delhi The rupee recovered from its all-time low levels and settled for the day higher by 19 paise at 82.94 against the US dollar on Tuesday, as the American currency retreated from its elevated levels.

Forex traders said the rupee appreciated tracking a weak tone in the US dollar. However, selling pressure by foreign investors amid risk aversion in global markets dented sentiments. At the interbank foreign exchange market, the local unit opened at 83.07 against the US dollar and moved in a range of 82.93 to 83.09 in the day trade. The rupee finally settled 19 paise higher at 82.94 against the previous close. On Monday, the rupee depreciated by 3 paise and settled for the day at an all-time low of 83.13 against the US dollar. The Indian rupee appreciated on the weak US dollar and positive domestic markets. The decline in crude oil prices also supported the rupee, while selling pressure by foreign investors capped sharp gains, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas. The US dollar declined on positive Asian and European markets and strong euro and pound.

“We do not see any sharp appreciation in the rupee as we expect the US dollar to recover amid the hawkish tone of the US Federal Reserve and continued selling pressure from FIIs,” Choudhary said. “However, a rise in risk appetite in global markets may support rupee at lower levels. US 10-year treasury yields rose to the highest levels since November 2007 on expectations of higher interest rates.”