Rupee Recovers 3ps To 87.08/$

Mumbai: The rupee recovered 3paise from its all-time low level to close at 87.08 against US dollar on Tuesday, as the American currency index retreated from its elevated level after President Donald Trump agreed to pause tariffs on Mexico and Canada. Forex traders said the US dollar index, which had surged past 109.88 level, retreated to 108 level after Trump announced the temporary pause on tariffs for 30 days. At the interbank foreign exchange, the rupee opened at 86.98 and touched an intraday low of 87.13 against the American currency during the session. The local unit finally settled at 87.08, higher by 3paise over its previous close. On Monday, the rupee plunged 49paise to close at an all-time low of 87.11 against the US dollar. “We expect the rupee to trade with negative bias over uncertainty over US trade tariffs. Escalation of the tariff war by China may dent global risk sentiments wherein the US dollar may strengthen and investors would look out for safe haven. However, any central bank intervention may support the rupee,” Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, said. Investors may remain cautious ahead of the Reserve Bank of India’s monetary policy meeting this week, Choudhary added. The monetary policy committee (MPC) of the Reserve bank of India (RBI) will begin its three-day meeting on February 5.