Rupee Recovers 3Ps To 84.72/$

Mumbai: The rupee recovered from its all-time low level and settled for the day with gains of just 3paise at 84.72 against the US dollar in a range-bound trade on Thursday, amid a positive trend in domestic equities. Forex traders said the Indian rupee recovered slightly on strength in the domestic markets and overnight decline in crude oil prices. However, a positive US dollar capped a sharp upside.

At the interbank foreign exchange, the rupee opened at 84.72, moved in a narrow range and touched an intraday high of 84.70 and a low of 84.74 against the greenback. On Wednesday, the rupee slumped by 7paise to hit its lowest-ever closing level of 84.75 against the US dollar. “We expect the rupee to trade with a negative bias on the strong dollar and worries over economic slowdown.

However, weakness in crude oil prices and fresh FII outflows may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. Choudhary further added that traders may take cues from weekly unemployment claims and trade balance data from the US. “USD-INR spot price is expected to trade in a range of Rs 84.50 to Rs 84.95,” he said. Moreover, market participants are also awaiting cues from the upcoming Reserve Bank of India (RBI) monetary policy on Friday, which will likely focus on balancing inflation and growth.